Latest news with #NiftyDefence
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Business Standard
3 days ago
- Business
- Business Standard
Defence stocks under pressure: Data Patterns, MDL down up to 8%; here's why
Nifty India Defence Index today: Shares of defence companies, public as well as private, are under pressure, with Nifty India Defence index falling 2 per cent on the National Stock Exchange (NSE) in Friday's intraday trade. At 11:41 AM, Defence index was the top loser among indices, as compared to 0.70 per cent decline in the Nifty50. Nifty Defence index has corrected 17 per cent from its all-time high level of 9,195.15 touched on June 6, 2025. Data Patterns (India), Mazagon Dock Shipbuilders, Paras Defence and Space Technologies, Bharat Dynamic (BDL), Garden Reach Shipbuilders & Engineers (GRSE), Hindustan Aeronautics (HAL), ZEN Technologies, Cochin Shipyard and Bharat Electronics (BEL) were down in the range 1 per cent to 8 per cent on the NSE. Why are defence stocks under pressure today? Defence companies like Data Pattern (India), Paras Defence and Zen Technologies have reported a disappointing earnings for the quarter ended June 2025r (Q1FY26). Shares of Data Patterns slipped 8 per cent to ₹2,362.30 on the BSE in intra-day trade. The company's revenue decreased by 4.6 per cent year-on-year (Y-o-Y) (down 74.9 per cent quarter-on-quarter (Q-o-Q)) to ₹99.3 crore, primarily due to temporary delays in execution. Ebitda margin was at 32.3 per cent, down 343 bps Y-o-Y and 543 bps Q-o-Q, mainly on account of higher employee cost. Profit after tax decreased 22.2 per cent Y-o-Y to ₹25.5 crore. While revenue for the quarter was modest, primarily due to temporary delays in customer approvals, these are expected to normalise in the coming quarters, the management saying they remain confident of delivering their year's targets. According to ICICI Securities, overall performance during the quarter was impacted due to delays in execution. However, the management expects these to normalise in the coming quarters. Order inflows remain healthy during the quarter at ₹183.5 crore (led by Brahmos service contracts). Order backlog stands at ₹1079 crore including orders under negotiations (1.5x TTM revenue). The management remains confident of healthy order inflows and achieving a revenue growth of 20-25 per cent with Ebitda margins at around 35-40 per cent in FY26E. The brokerage firm believes that pick-up in execution and order inflows would be the key things to watch-out for in the coming quarters. Meanwhile, Zen Technologies management had said Q1FY26 results reflect moderation in topline growth. They believe this is a temporary adjustment phase with a much stronger long term growth trajectory. Defence sector outlook, risks The Indian Aerospace & Defence (A&D) industry is experiencing major growth, largely driven by various government initiatives aimed at promoting self-reliance and enhancing domestic capabilities. The 'Make in India' and 'Atmanirbhar Bharat' initiatives have been pivotal in encouraging local manufacturing and reducing dependency on imports. These programmes have led to the development and induction of indigenous platforms such as the Tejas Mk1A fighter and advancements in the LCA Mk2 & Advanced Medium Combat Aircraft (AMCA) programme. The government's focus on public-private partnerships has also fostered innovation and expanded the industry's capabilities. Moving forward, the Indian A&D sector is expected to continue its upward trajectory, with a strong emphasis on self-reliance, technological advancement, and strategic collaborations to bolster national security and economic growth, HAL said in its FY25 annual report. The major risks and concerns for the company are dependence on foreign Original Equipment Manufacturers (OEMs) for supply of critical components and spares; dependence on limited customers for new contracts and competition from domestic and foreign players. Key risks for the defence sector companies include a decline or reprioritisation of the Indian defense budget, termination of existing contracts or failure to succeed in tendering projects, changes in procurement rules and regulations of the Ministry of Defence (MoD) and the government, and supply-chain-related issues.
Business Standard
25-07-2025
- Business
- Business Standard
These defence stocks cracked up to 28% from recent highs; correction over?
Technical charts show that defence stocks such as BDL, Mazagon Dock, Cochin Shipyard, ideaForge and GRSE can fall another 18% from here; check support levels each defence shares here. Rex Cano Mumbai Listen to This Article After surging up to 123 per cent earlier this year, shares of defence stocks have witnessed a notable correction in prices on the stock exchanges, and are down up to 27 per cent from their recent highs. Earlier in 2025, shares of Garden Reach Shipbuilders & Engineers (GRSE), Bharat Dynamics, Paras Defence and Solar Industries from the Nifty Defence index rallied in the range of 80 - 123 per cent, with GRSE as the top gainer. Among others, Mazagon Dock Shipbuilders, Cochin Shipyard, Astra Microwave Products, Bharat Electronics and Mishra Dhatu Nigam (Midhani) gained in the range of
Mint
18-07-2025
- Business
- Mint
Bharat Dynamics, HAL, Mazagon Dock extend losses to third day amid profit booking; fall up to 4%
Defense stocks, including Bharat Dynamics, HAL, Mazagon Dock Shipbuilders, Bharat Electronics, Garden Reach Shipbuilders, and others, continued to witness selling pressure for the third straight session on Friday, July 18. In fact, the downtrend has persisted since the beginning of July. The steady decline in these counters appears to be a reaction to profit-booking by investors, following a strong rally over the past four months that pushed valuations to unsustainable levels. Among today's worst performers is Bharat Dynamics, which declined by 4% to ₹ 1,683 per share. This marks the seventh consecutive day of decline for the stock, leading to a 10% drop this week and a 20% decrease from its recent high. Other notable losers include Data Patterns, Drone Acharya Aerial Innovations, ideaForge Technology, HAL, Sika Interplant Systems, Mazagon Dock Shipbuilders, Astra Microwave Products, Apollo Micro Systems, Bharat Electronics, and Paras Defence and Space Technologies, all of which declined between 1.5% and 3.5%. Amid a sharp sell-off, the Nifty Defence index dropped 2% to hit a two-month low of 8,197 points and is on track to close the week in the red, after falling nearly 5% in the previous week. Defense stocks had made a strong comeback in March, with momentum picking up in May following the launch of 'Operation Sindoor,' during which India showcased the strength of its indigenously developed defense systems and successfully intercepted drones and missiles launched by Pakistan. The further rise in the tensions in the Middle East also supported the continued rally in these domestic-focused stocks. Additionally, strong March quarter earnings, rising order inflows, expectations of increased defense spending by the Indian government to further strengthen national security, and growing global demand for India's indigenously manufactured defense products have all played a role in driving defense stocks to record highs. This stellar performance also pushed the combined market capitalization of the 18 Nifty India Defence constituents past the ₹ 11 lakh crore mark for the first time, reaching ₹ 11.3 lakh crore. Over the years, the Government of India (GoI) has implemented numerous policy initiatives with Atmanirbhar Bharat at its core to enhance domestic defense production capabilities, encourage investments, and expand exports. As a result, defense procurement from domestic vendors has increased from 61% in FY2017 to about 75% in FY2025e, while exports have grown more than 15-fold, registering a healthy CAGR of 41% to reach ₹ 23,622 crore during the FY2017–FY2025e period, as per ICRA. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Mint
24-06-2025
- Business
- Mint
BEML, GRSE to Zen Tech: Defence stocks fall over 6% on signs of de-escalation in Israel-Iran war after ceasefire
Defence stocks in focus today: Defence stocks including BEML, Paras Defence, Garden Reach Shipbuilders, Cochin Shipyard and HAL came under selling pressure in Tuesday's trade, June 24, after having remained in high-flying mode in recent sessions on the Indian stock market amid rising tensions in the Middle East. However, as signs of de-escalation between Iran and Israel appear to be emerging, investors chose to book profits in these counters. Seventeen out of eighteen constituents in the Nifty Defence index began the session in the red, dropping up to over 5% in early trade. BEML was the top laggard, falling 6.4% to hit an intraday low of ₹ ₹ 4,481, while Garden Reach Shipbuilders was the second-biggest drag, slipping 5.2% to ₹ 3,313 apiece. Other major defence stocks, including Mishra Dhatu Nigam, Astra Microwave, Paras Defence, Bharat Dynamics, Data Patterns, Zen Technologies, Unimech Aerospace, and Cochin Shipyard, also declined over 2%. The broader fall led the Nifty Defence index to crack 2.2%, hitting a day's low of ₹ 8,868, marking its second-biggest intraday drop in June so far.
News18
23-06-2025
- Business
- News18
Defence Stocks Fire Up On Escalating West Asia Tensions; Paras Defence, BEL Gain Up To 5%
Last Updated: Defence Stocks Rally: Shares of defence companies surged on June 23 after the US launched strikes on key Iranian nuclear facilities Defence Stocks Rally: Shares of defence companies surged on June 23 after the US launched strikes on key Iranian nuclear facilities, heightening tensions in the Middle East and fuelling expectations of increased defence spending globally. The Nifty Defence index rose nearly 1.7% to hover around 9,037 in morning trade. Zen Technologies and Paras Defence were the top performers, rising up to 5% and trading at around Rs 1,995 and Rs 1,718, respectively. Zen Tech was locked in its upper circuit. Other notable gainers included Astra Microwave, Bharat Electronics (BEL), Garden Reach Shipbuilders (GRSE), and Data Patterns — each gaining over 2%. Mazagon Dock rose nearly 2%, while Cochin Shipyard and DCX India added over 1.5% each. BEL also emerged as the top gainer on the Sensex. Hindustan Aeronautics (HAL), Bharat Dynamics (BDL), and BEML traded with modest gains, while Solar Industries bucked the trend with marginal losses. Meanwhile, drone-tech firm IdeaForge hit the upper circuit with a 10% rally to Rs 631.05. The rally came after former US President Donald Trump announced a successful strike on three of Iran's main nuclear enrichment sites. In a televised address, Trump claimed the facilities had been 'completely obliterated" using bunker-buster bombs and Tomahawk missiles, while also warning Iran of further action if a peace deal is not reached. Israeli Prime Minister Benjamin Netanyahu hailed the move, calling it a 'bold decision" to deny nuclear weapons to a dangerous regime. Though US officials clarified that Washington is not at war with Tehran, the heightened rhetoric added to global market volatility. Indian defence stocks have already been in focus in recent months. In May, India carried out cross-border strikes under 'Operation Sindoor' against terror outfits in Pakistan, boosting investor interest in the sector. The ongoing Russia-Ukraine war has further supported sentiment toward defence plays. However, analysts remain divided. While some expect strong order inflows to continue, others caution that current valuations in the sector may be running ahead of fundamentals. 'Defence stocks have been highly volatile lately, rallying strongly after Operation Sindoor, then seeing profit booking, and now rising again amid Middle East tensions. This reflects a mix of short-term momentum and long-term optimism. Geopolitical risks and a stronger push for domestic defence manufacturing have boosted investor confidence. With India's defence spending at just 1.9% of GDP, there's significant room for long-term growth," said Ajit Mishra, SVP, Research, Religare Broking. 'However, the sharp rally has brought valuation concerns, making near-term volatility likely. Investors should remain selective, focusing on companies with robust order books, sound financials, and strong execution. While the momentum may fluctuate, the long-term outlook for India's defence sector remains structurally attractive in an increasingly uncertain global landscape," he added. Sankhanath Bandyopadhyay, Economist at Infomerics Valuation and Ratings, meanwhile, said, 'Defence stocks look promising due to the ongoing geopolitical tussle between Iran and Israel. Moreover, the Indian government is likely to enhance defence spending from the current ~2 per cent of GDP to 3–4 per cent over the next decade. Further, the government has targeted Rs 25,000 crore in defence exports by 2025–26." He added, 'Investors can focus on export-driven defence stocks with long-term potential. In the current scenario, geopolitical tensions will likely be lingering between different countries, especially as being reflected in rising tensions in the Middle East. Investors should carefully assess the financials and outlook of such stocks before investing, and there should be a judicious mix so that a healthy dividend can also be earned." Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
