Nirmal Bang's Rahul Arora bets HAL, BEML, Solar Industries are long-term defence plays

In today's session, the market’s fiery run continued, with the Nifty locking in its best weekly performance in four years, soaring 4.27 percent — the highest since February 2021, when it had surged 9.46 percent in a week.

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26 Aug, 2025 12:21

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India’s defence and industrial sectors offer big opportunities in names like Hindustan Aeronautics (HAL), Bharat Earth Movers (BEML) and Solar Industries as key players, according to Rahul Arora, CEO of Nirmal Bang Equities, who told CNBC-TV18 on March 21 that strong order books, geopolitical shifts, and solid financials are underpinning his conviction in these stocks.

HAL: The Biggest Risk-Reward Bet

For Arora, HAL holds the most compelling risk-reward potential. A recent statement from the Air Chief Marshal, which went viral, reinforced confidence in India's aerospace leader. With a massive order book in place, execution will be the key factor. If HAL gets it right, Arora believes the company can comfortably grow at 20-25 percent, making it one of the most promising bets in the sector.

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BEML: Finding Opportunity in Adversity

BEML’s or Bharat Earth Movers' prospects may seem counter-intuitive, but Arora sees a longer-term play. The company has been deeply involved in Russia, Ukraine, and the Middle East - regions currently mired in conflict. Once these geographies stabilize, Arora expects fresh orders to flow in, positioning BEML for substantial growth over the next five to seven years.

Solar Industries: A 12-Year-Long Conviction

Rahul Arora has been bullish on Solar Industries for over a decade, calling it a 'very well-held institutional company'. He sees the company compounding its topline, EBITDA, and profit after tax by 25-30 percent, backed by strong fundamentals. With a nearly 30 percent return on capital employed, the stock isn’t cheap, but its financial strength and quasi-FMCG nature justify the valuation. Arora expects Solar Industries to generate a billion dollars in cash flows within a couple of years.

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In Friday’s session, the market run up continued with the Nifty locking in its best weekly performance in four years, soaring 4.27 percent —highest since February 2021. The Sensex wasn’t far behind, posting its best week since July 2022, with a 4.2 percent gain underscoring market’s momentum.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.