Defence Stocks Slip: BDL, GRSE, HAL Fall Up To 3% After Trump-Zelenskyy Talks

Last Updated:August 19, 2025, 15:15 IST

Defence stocks fell as hopes of a Russia-Ukraine ceasefire gained traction following US President’s meeting with Ukrainian President

Defence Stocks Fall (Representational Photo)

Defence stocks came under pressure on August 19 as hopes of a Russia-Ukraine ceasefire gained traction following US President Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskyy at the White House.

The Nifty India Defence index slipped nearly 1% to around 7,742 in afternoon trade, weighed down by sharp declines across key counters.

Trump, who met Russian President Vladimir Putin in Alaska last Friday, said he had spoken to the Russian leader again and was working on arranging a meeting between Putin and Zelenskyy, to be followed by a trilateral summit. While noting he liked the idea of a ceasefire, Trump told reporters that both sides could continue working on a peace deal even as fighting persisted.

The prospect of easing geopolitical tensions dragged Indian defence stocks, which have already corrected sharply from record highs amid stretched valuations and fading triggers.

Bharat Dynamics (BDL) fell nearly 3% to Rs 1,559, while Data Patterns shed over 2%. Solar Industries, Garden Reach Shipbuilders & Engineers (GRSE), and Hindustan Aeronautics (HAL) slipped more than 1% each. Bharat Electronics (BEL), Cochin Shipyard, and Mazagon Dock Shipbuilders also traded in the red with marginal losses.

On the other hand, BEML and Paras Defence bucked the downtrend, posting modest gains.

Defence Stock Pick By Antique Stock Broking

Defence stock Zen Technologies Ltd (Zen Tech) received a ‘Buy’ call from Antique Stock Broking on Tuesday, as the brokerage initiated coverage with a target price of Rs 1,866, implying a 31% upside from current levels. The rating comes despite the stock sliding nearly 25% in the past month.

Antique acknowledged that while Zen Tech has posted strong profit growth in recent years, near-term earnings may be impacted by delays in order finalisations, potentially pausing growth in FY26. However, it expects the company to rebound strongly from FY27, driven by large opportunities in Simulation and Anti-Drone Systems (ADS).

Zen Tech, with in-house ADS capabilities, is well-placed to tap into an estimated Rs 10,000 crore opportunity over the next five years, as recent conflicts underscore the need for drone defence to protect India’s borders, airports and nuclear plants, Antique said.

The brokerage also highlighted Zen Tech’s leadership in simulation-based training solutions for the armed forces. It projected a consolidated revenue, EBITDA and profit CAGR of 29%, 25% and 26%, respectively, over FY25–28.

The stock has a strong balance sheet, with net cash of Rs 1,180 crore, an asset-light model and high margins, all of which support robust return ratios, Antique noted.

“We initiate coverage with a BUY rating, valuing Zen Tech at 32x 1HFY28E EPS to arrive at a target price of Rs 1,866,” the brokerage said.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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