New Delhi: Despite a positive start in the stock market on Monday 18 November 2024, the selling pressure came under. In such a situation, some select defense sector stocks are looking attractive for long-term investment. Antique Stock Broking has recommended buying on Hindustan Aeronautics (HAL), Bharat Dynamics (BDL), and Garden Reach Shipbuilders (GRSE) and their outlook looks positive after the financial results of these companies. In the last one year, these three defense PSU stocks have given excellent returns to the investors and they are expected to rise further in the coming times.

Hindustan Aeronautics (HAL)

Antique Broking has a buy call on HAL (Hindustan Aeronautics), however, the target price has been reduced from ₹6,145 to ₹5,902 per share. The stock closed at ₹4,087 on November 15, 2024, and is expected to rise by about 45% from current levels. The stock has given a return of 95% in the last one year, and has seen a gain of 48% so far in 2024. However, in the recent market sell-off, the stock has fallen by about 8% and has become 28% cheaper than its 52-week high.

According to Antique Broking, HAL's operational results have been in line with estimates. The company is facing some challenges in the supply of GE engines for the Tejas MKIA fighter aircraft, but the company is likely to receive strong orders from the Indian armed forces. The company's performance is expected to pick up in the coming years, and earnings growth is expected to be at 18% CAGR.

Bharat Dynamics (BDL)

Antique Broking continues to recommend buying Bharat Dynamics (BDL), although the target price has been reduced from ₹1,579 to ₹1,357 per share. The stock closed at ₹989 on November 15, 2024, and an upside of 38% can be seen from the current price. BDL has given a stellar return of 70% in the last one year, but it has declined by about 15% in the recent month. Antique believes that BDL is currently facing supply chain issues, but order execution is expected to pick up in the second quarter. Apart from this, the company is working towards manufacturing critical components in India itself, so that dependence on foreign suppliers can be reduced. The company has a huge backlog of ₹19,000 crore, and its exports are also expected to increase, especially the export of Akash missiles.

Garden Reach Shipbuilders (GRSE)

Antique Broking has also given a BUY rating on Garden Reach Shipbuilders and Engineers (GRSE), however, its target price has been reduced from ₹ 2,092 to ₹ 1,783 per share. The stock closed at ₹ 1,403 on November 15, 2024, and a return of about 28% is expected from the current level. The stock has given a stellar return of 58% so far this year and has risen 75% in the last one year. Antique says that GRSE's second second-quarters have been better than expected, and the company has thecan24 platforms. The company's current order backlog is ₹ 24,228 crore, which includes major projects to be executed. The company has also focused on shipbuilding and green energy platforms in the coming years, which can provide strong support to growth.