Brokerages Bullish on Defence, Port, Quick Commerce Stocks

Multiple brokerages have issued bullish calls on a select group of Indian stocks, driven by strong fundamentals across defence spending, port infrastructure, and the expanding quick commerce sector. These recommendations highlight significant upside potential for investors.

Bharat Electronics Leads Defence Picks

Defence electronics major Bharat Electronics has garnered positive recommendations from both Macquarie and Goldman Sachs. Both firms project the company will benefit from India’s heightened focus on domestic defence manufacturing and procurement initiatives.

• Macquarie holds an ‘Outperform’ rating with a target price of Rs 550, suggesting an upside of approximately 33.2%.
• Goldman Sachs has a ‘Buy’ rating, setting a 12-month target price of Rs 445, implying an upside of approximately 7.7%.
• The company’s pivotal role in defence indigenisation, electronic warfare, radar systems, and air-defence programs like Mission Sudarshan Chakra underpins these positive outlooks.

Adani Ports & Special Economic Zone Gains Traction

Adani Ports & Special Economic Zone has attracted favorable assessments from Bernstein and PL Capital. Bernstein points to the company’s healthy balance sheet, established pricing power, expanding international business, and resilient operating performance.

• PL Capital has maintained its ‘Buy’ rating, raising its target price to Rs 2,123, indicating an upside of approximately 17.3%.
• This follows Adani Ports’ agreement to divest a 49% stake in Adani Vizhinjam Port to Terminal Investment Limited, a move expected to ensure long-term cargo visibility and support future expansion.

PL Capital further projects robust growth for Adani Ports. Volume and EBITDA are expected to see compound annual growth rates of 12% and 15%, respectively, spanning the fiscal years 2026 to 2028.

Eternal Shows Promise in Quick Commerce

Eternal has received positive recommendations from Bernstein and Emkay, with both constructive on its quick commerce and Food Delivery businesses. Bernstein specifically notes Eternal’s capacity to navigate competitive quick commerce landscapes, alongside healthy growth in earnings and net operating value.

• Emkay has retained a ‘Buy’ rating on Eternal, setting a target price of Rs 400, which implies an upside of 40.8%.
• Emkay’s analysis highlighted Eternal’s quarterly performance exceeding expectations.

The company’s quick commerce arm, Blinkit, reported a net operating value growth of 19.1% quarter-on-quarter, fueled by increased users and order frequency. Concurrently, Food Delivery net operating value climbed 20.1% year-on-year, while adjusted EBITDA increased by 34.4%.

Solar Industries India Bolstered by Defence Focus

Solar Industries India also secured ‘Buy’ calls from Goldman Sachs and Elara Capital, primarily driven by its expanding defence segment. Goldman Sachs issued a ‘Buy’ rating with a 12-month target price of Rs 20,180, suggesting an upside of approximately 1.4%.

The brokerage underscored Solar Industries’ increasing involvement and exposure to India’s crucial defence sector, positioning it for continued growth. Analysts remain optimistic about these companies’ strategic advantages and market positions as key growth triggers persist across their respective industries.