Defence Stocks Rally: DCX Systems, MTAR Technologies, HAL, and BEML Lead the Surge

Market Performance

India's defence sector is witnessing an  bull run, with the market capitalization of 18 listed defence companies reaching a record ₹11.23 lakh crore.

• This marks a 50% jump from February 2025, when the market cap had dipped to ₹6.95 lakh crore.
• The previous peak was ₹10.09 lakh crore, seen in July 2024.

The Nifty India Defence Index has surged:

• 9% so far in May 2025
• 11.5% in April
• 24.6% in March

This rally follows a sharp 33% correction from July 2024 to February 2025, making the current recovery even more notable.

 Main News: Key Gainers and Performers

The ongoing rally is not uniform, but select stocks have dramatically outperformed.

Ten major companies have rebounded from their 52-week lows hit in March-April, gaining between 55% and 112%, including:

• DCX Systems
• MTAR Technologies
• Dynamatic Technologies
• Cyient DLM
• Unimech Aerospace and Manufacturing
• Data Patterns
• Mishra Dhatu Nigam
• Astra Microwave Products
• Hindustan Aeronautics (HAL)
• BEML

In addition, eight more defence firms that had hit lows earlier in 2024 have also staged impressive recoveries with gains between 58% and 200%.

Company Details

Here's a look at how investor interest has shifted across major defence stocks:

• Hindustan Aeronautics (HAL): Attracted ₹505 crore in April inflows; total mutual fund holding now at ₹13,480 crore.
• Solar Industries India: Added ₹119 crore; total holding at ₹15,510 crore.
• Mazagon Dock Shipbuilders: Gained ₹78 crore, reaching ₹1,727 crore in fund holdings.
• Other Stocks with Fresh Inflows:
• • Zen Technologies
  • BEML
  • Data Patterns
  • Garden Reach Shipbuilders
  • Mishra Dhatu Nigam
  • Dynamatic Technologies

Meanwhile, Bharat Electronics saw a sharp outflow of ₹893 crore, bringing its total mutual fund holdings to ₹33,619 crore.

Smaller outflows were also seen in:

• Cochin Shipyard
• Astra Microwave Products
• Unimech Aerospace
• MTAR Technologies

Summary of the Article

The Indian defence sector is experiencing strong momentum in 2025, with stocks like DCX Systems, MTAR Technologies, HAL, and BEML leading a widespread rally. The combined market cap of defence stocks has touched a historic ₹11.23 lakh crore, signaling robust investor sentiment and sectoral strength.

• The rally is backed by strong government push, rising geopolitical tensions and a renewed emphasis on the 'Make in India' defence initiatives.
• Multiple stocks have seen Over 100 % returns in just months, making defence one of the most watched sectors on Dalal Street.

As defence remains a strategic priority for India, investors closely track stocks like Data Patterns, Dynamatic Technologies, and Mishra Dhatu Nigam, especially as foreign interest in systems like BrahMos missiles continues to grow.