Mazagon Dock vs Bharat Dynamics vs BEL: Which PSU defence stock to buy after Q4 results 2025?

Mint

5 days ago

Indian defence stocks have recently drawn investor interest amid escalating tensions between India and Pakistan, coupled with the government's continued push towards indigenisation in defence manufacturing. Shares of defence PSUs (public sector undertakings) such as Bharat Dynamics (BDL), BEML, Bharat Electronics (BEL), Hindustan Aeronautics (HAL), Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers, and Cochin Shipyards have recently witnessed robust momentum.
Among these, BEL, BDL, and Mazagon Dock Shipbuilders have recently announced their Q4FY25 results. Here is a comparative analysis of their performance and insights into which defence stock to buy after Q4 results 2025.
Bharat Electronics Ltd (BEL) reported a net profit of ₹ 2,105 crore for Q4FY25, marking an 18% increase from ₹ 1,784 crore in the corresponding quarter of the previous year. The defence company's revenue from core operations rose 7% YoY to ₹ 9,119.7 crore.
As of April 1, 2025, BEL's order book stood at a robust ₹ 71,650 crore. The board recommended a final dividend of ₹ 0.90 per equity share of face value ₹ 1 each.
Bharat Dynamics posted a 5.54% YoY decline in net profit to ₹ 272.77 crore for Q4FY25. However, its total revenue from operations more than doubled, rising to ₹ 1,776.98 crore from ₹ 854.12 crore a year earlier. The defence PSU's board recommended a final dividend of ₹ 0.65 per equity share of ₹ 5 each.
Mazagon Dock Shipbuilders reported a sharp 51% YoY decline in net profit to ₹ 325.3 crore for Q4FY25. Revenue from operations rose modestly by 2.3% YoY to ₹ 3,174.4 crore. The board declared a final dividend of ₹ 2.71 per equity share of ₹ 5 each.
Among the three, Bharat Electronics (BEL) has emerged as the strongest contender based on Q4 results, according to Seema Srivastava, Senior Research Analyst at SMC Global Securities.
BEL's strength is underpinned by a healthy order book, particularly in radar and electronic warfare systems. In contrast, BDL's profitability declined, and MDL saw a sharp drop in net profit.
'BEL stands out as a stable investment opportunity due to its consistent earnings, large order pipeline, and diversified portfolio,' Srivastava noted.
She added that while Bharat Dynamics and Mazagon Dock benefit from their strategic role in India's defence ecosystem, short-term market sentiment remains cautious.
'For investors focused on long-term growth in India's defense sector, BEL appears to be the most attractive defence stock pick post-Q4 results. However, it's essential to keep an eye on Mazagon Dock's volatility and BDL's recovery potential, as both companies have their strengths and weaknesses,' Srivastava said.
From a technical perspective, Bharat Electronics currently exhibits the most promising setup, said Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi.
'On the weekly chart, BEL share price is forming a bullish flag pattern, which typically signals the potential for strong upward momentum. Bharat Electronics shares have also been consistently sustaining above the 1.28 Fibonacci retracement level from their March low, which lies at ₹ 370 — now acting as a key support zone. Bharat Electronics share price is currently trading around ₹ 385, offering an attractive risk-reward ratio,' Dongre explained.
Bharat Dynamics share price is currently in a consolidation phase, oscillating between ₹ 1,800 and ₹ 2,030. The stock is yet to break above the 1.28 Fibonacci retracement level from its March low. Dongre advised waiting for a breakout above this range for a clearer directional signal.
Mazagon Dock share price has already approached the 1.618 Fibonacci extension level from its March low, effectively meeting its projected technical targets. 'With the stock nearing its extended resistance zone, the immediate upside appears limited. As such, it may not offer a favourable entry point for new positions in the near term,' Dongre said.
Both on fundamental and technical grounds, Bharat Electronics emerges as the strongest defence stock pick among Mazagon Dock Shipbuilders and Bharat Dynamics post-Q4 results 2025.
'Between Mazagon Dock, Bharat Dynamics, and BEL, BEL clearly stands out with its bullish chart pattern, support above a key Fibonacci level, and breakout confirmation. For investors seeking a technically robust opportunity, BEL is a favourable pick in the ₹ 385 – ₹ 390 range, with a target of ₹ 420 – ₹ 440 and a stop-loss at ₹ 370,' Dongre said.
Backed by robust financial performance, a strong order book, favourable technical structure, and strategic relevance, BEL offers a balanced proposition for both long-term investors and short-term traders.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.