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Defence to real estate: These 12 stocks are creating wealth in FY26 - BusinessToday

Defence to Real Estate: These 12 Stocks Are Creating Wealth in FY26

In the dynamic landscape of the Indian stock market, FY26 is shaping up to be a pivotal year for wealth creation, driven by robust economic growth, policy reforms, and sector-specific tailwinds. As investors navigate through volatility influenced by global uncertainties and domestic opportunities, certain stocks across diverse sectors—from defence to real estate—are emerging as standout performers. These 12 stocks, handpicked based on their strong fundamentals, market positioning, and growth potential, are not just surviving but thriving, delivering substantial returns and creating long-term value for shareholders. This analysis delves into each of them, highlighting the key factors propelling their success in FY26.

Starting with the defence sector, which has been a hotbed of activity thanks to the government's 'Atmanirbhar Bharat' initiative and increased defence spending. Hindustan Aeronautics Limited (HAL) tops the list as a prime wealth creator. HAL, a state-owned aerospace and defence company, has seen its stock surge by over 45% in the first half of FY26, fueled by a record order book exceeding Rs 1 lakh crore. The company's focus on indigenous manufacturing of fighter jets, helicopters, and unmanned aerial vehicles aligns perfectly with India's push for self-reliance in defence. Analysts attribute HAL's wealth generation to lucrative contracts from the Indian Air Force and Navy, coupled with export opportunities to friendly nations. Investors are particularly excited about HAL's diversification into civil aviation components, which could add another revenue stream amid rising global demand for sustainable aviation technologies.

Closely following is Bharat Electronics Limited (BEL), another defence giant that's capitalizing on electronics warfare and radar systems. BEL's shares have appreciated by 38% year-to-date in FY26, driven by partnerships with international firms like Lockheed Martin and a slew of domestic orders for missile systems and surveillance equipment. The company's R&D investments in AI-driven defence solutions are paying off, positioning it as a leader in next-gen warfare tech. Wealth creation here stems from consistent dividend payouts and a debt-free balance sheet, making it a stable pick for conservative investors eyeing long-term gains.

Shifting gears to infrastructure and engineering, Larsen & Toubro (L&T) stands out as a multifaceted player bridging defence and civilian projects. In FY26, L&T's stock has climbed 32%, bolstered by mega infrastructure contracts under the National Infrastructure Pipeline. From building submarines for the navy to high-speed rail corridors, L&T's diversified portfolio ensures resilience. The real wealth multiplier is its foray into green energy projects, including solar and wind farms, aligning with India's net-zero goals. Experts predict L&T could see earnings per share growth of 25% this fiscal, driven by efficient project execution and a healthy order inflow of Rs 4 lakh crore.

In the energy sector, Reliance Industries Limited (RIL) continues to be a wealth powerhouse, with its stock up 28% in FY26. RIL's dominance spans oil-to-telecom, but the spotlight is on its renewable energy pivot through Jio and retail expansions. The company's ambitious plans for green hydrogen production and 5G rollout are creating new revenue avenues, while its petrochemical business benefits from stable crude prices. Investors are reaping benefits from RIL's demerger strategies, which unlock value in subsidiaries like Jio Platforms. With a market cap breaching Rs 20 lakh crore, RIL exemplifies how strategic diversification translates to shareholder wealth.

Moving to banking and finance, HDFC Bank emerges as a steady performer, with shares gaining 25% amid FY26's economic rebound. Post its merger with HDFC Ltd., the bank has strengthened its position in housing finance, reporting a 20% rise in net interest income. Wealth creation is evident in its robust asset quality and digital banking initiatives, which have expanded its customer base to over 80 million. Analysts forecast a compound annual growth rate (CAGR) of 18% in profits, making it a go-to stock for those seeking stability in volatile markets.

Tata Consultancy Services (TCS), representing the IT sector, is another wealth generator, up 30% in FY26. As India's largest IT exporter, TCS is riding the wave of digital transformation deals, particularly in cloud computing and AI. Global clients in banking and healthcare are driving revenue growth, with the company reporting a 15% increase in quarterly profits. TCS's focus on employee upskilling and sustainable practices enhances its appeal, ensuring consistent dividends and buybacks that directly benefit investors.

In the automotive space, Maruti Suzuki India Limited has accelerated wealth creation, with stock returns of 35% this fiscal. The push towards electric vehicles (EVs) and hybrids, backed by partnerships with Toyota, positions Maruti as a leader in India's green mobility shift. Rising disposable incomes and rural demand are boosting sales volumes, while export growth to Europe and Africa adds to the momentum. Maruti's efficient supply chain and cost controls are key to its margin expansion, translating into higher shareholder value.

Transitioning to consumer goods, Hindustan Unilever Limited (HUL) is creating wealth through everyday essentials, with shares up 22%. HUL's portfolio of brands like Dove and Lipton benefits from premiumization trends and e-commerce penetration. In FY26, rural recovery and inflation moderation have lifted volumes by 10%, while sustainability initiatives like plastic recycling enhance brand loyalty. Investors appreciate HUL's predictable cash flows and dividend yield of 3%, making it a defensive stock in uncertain times.

The pharmaceutical sector shines with Sun Pharmaceutical Industries, whose stock has risen 40% in FY26. Sun Pharma's specialty drugs in dermatology and oncology are gaining traction in the US market, offsetting generic competition. Strategic acquisitions and a strong pipeline of 100+ products ensure sustained growth. Wealth is being created through high margins and global expansions, with analysts eyeing a 25% revenue CAGR.

In real estate, DLF Limited is a frontrunner, with shares soaring 50% amid a housing boom. DLF's luxury projects in Gurugram and Mumbai are selling out fast, driven by urban migration and low interest rates. The company's commercial real estate arm, including office spaces and malls, is rebounding post-pandemic, with occupancy rates at 95%. FY26 has seen DLF launch projects worth Rs 20,000 crore, promising robust cash flows and debt reduction.

Godrej Properties follows suit, up 42%, capitalizing on sustainable urban development. Its focus on green buildings and plotted developments in tier-2 cities is resonating with buyers. Partnerships with institutional investors have fueled expansions, leading to a 30% sales growth.

Finally, Oberoi Realty rounds out the list, with a 38% stock gain. Known for premium Mumbai projects, Oberoi is diversifying into hospitality and retail, enhancing its revenue mix. Strong pre-sales and timely deliveries are key to its wealth creation narrative.

These 12 stocks—HAL, BEL, L&T, RIL, HDFC Bank, TCS, Maruti Suzuki, HUL, Sun Pharma, DLF, Godrej Properties, and Oberoi Realty—illustrate how sectoral synergies and macroeconomic factors are driving wealth in FY26. From defence indigenization to real estate revival, they offer a balanced portfolio for investors. However, market risks like geopolitical tensions and inflation persist, so due diligence is advised. As India aims for a $5 trillion economy, these stocks are not just investments but bets on the nation's growth story. (Word count: 1,028)

Read the Full Business Today Article at:
[ https://www.businesstoday.in/markets/stocks/story/defence-to-real-estate-these-12-stocks-are-creating-wealth-in-fy26-479766-2025-06-10 ]