Defence Stocks To Buy This Holi 2025: ICICI Securities picks these stocks amid EU arms boost

Driven by strong order books, government initiatives, and increasing worldwide demand, India's defence stocks have become top gainers as the geopolitics of the world changes. Investors are looking at defence stocks with potential high returns as Holi 2025 draws near. ICICI Securities highlights all the PSU defence companies gaining from the European Union's "Re-arm Europe" strategy is especially in focus.

Solar Industries: Global traction and order book

In the segment of ammunition and explosives, Solar Industries India Ltd (SOIL) has become rather important. Having a strong defence order book valued at Rs 13,000 crore, almost half of which comes from exports, the company stands to gain greatly from worldwide military expenditure. Recent contracts for Pinaka rocket systems and Bhargavastra counter-drone systems highlight its innovation and growing international demand. Analysts have set a target price of Rs 13,720, expecting continued revenue expansion in the coming quarters.

PTC Industries: Titanium leader with aerospace partnerships

PTC Industries Ltd is another standout, leveraging its expertise in titanium and superalloys for defence and aerospace applications. The company’s recent expansion of India’s largest Titanium VAR capacity (1,500 TPA) and upcoming EBCHR (5,000 TPA) and PAM (200 TPA) facilities position it well for European defence contracts. Partnerships with Airbus, Rolls Royce, and Pratt & Whitney reinforce its global presence. With a target price of Rs 20,070, the stock remains a solid pick for long-term investors.

Dynamatic Technologies: Defence and aerospace diversification

Dynamatic Technologies Ltd has been aggressively expanding its presence in both defence and aerospace. The company’s foundry in Germany, Eisenwerk Erla GmbH, is expected to supply artillery shell casings for European markets. It has also strengthened partnerships with Airbus, Dassault, Bell, and Deutsche, positioning itself for defence-related contracts. Analysts peg the stock target at Rs 9,330, projecting significant growth in FY26.

Azad Engineering: Rapid order book expansion

Azad Engineering has witnessed a staggering jump in its order book from Rs 1,700 crore to Rs 6,500 crore within a year. While much of this growth comes from the power and oil & gas sectors, the company has been expanding its defence footprint, particularly through contracts with Rolls Royce. Given its cost competitiveness and manufacturing capabilities in aerospace components and airfoils, ICICI Securities expects strong revenue growth. The target price for Azad Engineering stands at Rs 2,350, making it an attractive investment option.

With increasing global defence expenditure, particularly from the European Union, Indian defence manufacturers are well-positioned for sustained growth. A report from ICICI Securities identifies Solar Industries, PTC Industries, Dynamatic Technologies, and Azad Engineering as top picks. As Holi 2025 approaches, these stocks offer a promising mix of strong fundamentals, high growth potential, and rising international demand.