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Mint
31-05-2025
- Business
- Mint
Mazagon Dock vs Bharat Dynamics vs BEL: Which PSU defence stock to buy after Q4 results 2025?
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.
Mint
10-05-2025
- Business
- Mint
Canara Bank vs PNB vs BoB: Which bank PSU stock to buy after Q4 results 2025?
Canara Bank vs PNB vs BoB: After the announcement of Q4 results 2025 last week, Indian stock market investors would be keen to find value picks among bank PSU stocks—Canara Bank, Pubjab National Bank (PNB), and Bank of Baroda (BoB). Amid sharp selling pressure on Friday after the escalation in India-Pakistan tension, shares of PNB, Canara Bank, and BoB ended higher. So, these PSU stocks are expected to remain under the bulls' radar when the Indian stock market reopens next week. According to stock market experts, PNB reported the highest rise in global business during Q4FY25, which was driven by a rise in global deposits. Bob also reported double-digit growth in global advances. Canara Bank also reported modest growth, driven by a rise in global gross advances and domestic deposits. Reveiwing the Q4 2025 results of respective PSU banks, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, "After the Q4 FY2025 results, among the three major PSU banks—Punjab National Bank (PNB), Bank of Baroda (BoB), and Canara Bank—PNB and BoB appear to be the stronger contenders, while Canara Bank lags slightly in key areas." "Starting with business growth, PNB reported the highest year-on-year (YoY) increase in global business, with a 14.03% rise to ₹ 26.83 lakh crore. It also recorded strong growth in global deposits (14.38%) and advances (13.56%). RAM (Retail, Agriculture, MSME) advances grew by an impressive 15.89%. In comparison, BoB's global advances increased by 12.8%, with robust growth in retail loans at 19.4%, while global deposits rose by 10.3%. Canara Bank showed more modest growth, with global gross advances rising by 11.74% and domestic deposits by 9.56%," Seema added. Comparing the profitability of these three PSU banks, Seema Srivastava said, "In terms of profitability, PNB stands out with the highest Return on Equity (RoE) at 19.33% and a significant improvement in Return on Assets (RoA) to 0.97%. Net Interest Income (NII) for PNB grew 6.7% to ₹ 42,782 crore, although its Net Interest Margin (NIM) remained flat at 2.93%. BoB, meanwhile, posted the highest NIM at 3.02%, along with an RoA of 1.16% and RoE of 16.96%. Canara Bank, in contrast, saw a 1.44% decline in NII and a steep 34 basis point drop in NIM to 2.73%, although its operating profit in Q4 grew 12.14% YoY and net profit rose over 33%." Asked about asset quality of Canara Bank, PNB and BoB, Seema said, "On asset quality, Bank of Baroda emerged as the leader with the lowest Gross NPA (2.26%) and Net NPA (0.58%), showing strong improvement from the previous year. PNB did not disclose NPA ratios but reported the highest Provision Coverage Ratio (PCR) at 96.82% and a sharp improvement in credit cost to 0.21% from 0.81%. Canara Bank's GNPA and NNPA improved to 2.94% and 0.70%, respectively, with a PCR of 92.7%." On which stock is better from the fundamental perspective, Seema Srivastava of SMC Global Securities said, "PNB is best positioned for investors seeking high growth and improving profitability, while BoB appeals to more conservative investors due to its strong asset quality and stable margins. Despite positive profit growth and improving asset quality, Canara Bank is relatively less attractive due to falling NII and NIM. Thus, PNB and BoB are better placed for investment consideration post-Q4 FY25 results." On which stock is better from the technical perspective, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, "From a technical standpoint, Canara Bank currently presents a more attractive setup than PNB and Bank of Baroda (BOB). On the monthly chart, Canara Bank share price has formed a bullish engulfing pattern, a strong indicator of potential upward momentum. Moreover, the stock has broken out of its Bollinger Band, indicating heightened volatility and the possibility of a continued uptrend. The medium-term target for the stock lies in the ₹ 125 to ₹ 130 range. Currently trading near ₹ 95 to ₹ 100, Canara Bank share offers a favourable risk-reward ratio, particularly with a well-placed stop loss at ₹ 75." On technical charts regarding PNB and BoB shares, Ganesh Dongre of Anand Rathi said, 'BOB share price remains in a profit-booking and consolidation phase, currently trading within a ₹ 200 to ₹ 250 range. A breakout on either side of this zone will likely dictate its next major move. Until such confirmation emerges, BOB share lacks a compelling technical entry point. PNB share price, having undergone a significant correction, still shows no clear technical setup or breakout on the medium-term chart. As a result, it offers limited immediate upside potential from a technical perspective.' 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 making any investment decisions.
Mint
10-05-2025
- Business
- Mint
India-Pakistan war buzz: HAL vs BEL vs Mazagon Dock Shipbuilders — which defence stock to buy amid rising drone attacks?
India-Pakistan war buzz: Despite showcasing resilience against the India-Pakistan war buzz, the Indian stock market witnessed sell-off pressure on the last two sessions last week. After going off on Thursday, key benchmark indices of Dalal Street came under sharp selling pressure on Friday. However, defence stocks continue to remain bulls' favourite. Indian defence majors Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Mazagon Dock Shipbuilders, Apollo Micro Systems, etc., witnessed substantial upside despite weak trends on Dalal Street. According to stock market experts, these defence stocks are rising due to the distinct investment opportunity created by the rising India-Pakistan war buzz. Comparing HAL, BEL and Mazagon Dock Shipbuilders shares, they said that each company presents unique opportunities, and investors should consider their individual investment goals and risk tolerance when making a decision. However, they maintained that BEL shares remain stable due to its diversified portfolio and alignment with the government's defence initiatives. Comparing ther returns prospect among HAL, BEL, and Mazagon Dock Shipbuilders, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, 'HAL has demonstrated robust financial performance, with a 14% increase in consolidated net profit for Q3 FY25, reaching ₹ 1,440 crore, driven by strong demand from the Indian Ministry of Defence. The company's revenue from operations rose 15% year-on-year to ₹ 6,957 crore in the same quarter. HAL's order book is projected to reach ₹ 2.5 trillion by FY26, bolstered by significant orders such as 97 Tejas Mk1a aircraft and 156 Light Combat Helicopters, totalling ₹ 1.3 trillion. Additionally, HAL secured fresh orders worth ₹ 55,800 crore in FY25, including manufacturing and repair contracts.' "BEL, a leader in defence electronics, has a diversified portfolio encompassing radars, communication systems, and electronic warfare equipment. On 1 April 2025, the company announced total order inflows of ₹ 18,715 crore for FY24- 25, falling short of its ₹ 25,000 crore target. During its Q3 FY25 earnings call, BEL's management had guided analysts toward achieving this milestone, but actual inflows failed to meet expectations. As of 1 April 2025, BEL's total order book is around ₹ 71650 crore, including the export order book of $359 million. BEL posted a provisional and unaudited turnover of ₹ 23,000 crore for FY25, reflecting a 16% growth from ₹ 19,820 crore in the previous year," Seema added. The SMC Global Securities expert said that BEL's strategic position in the defence sector and its focus on indigenisation align with the government's push for self-reliance in defence manufacturing. The company's strong order book and consistent performance make it a stable investment choice in defence. Highlighting the fundamentals of Mazagon Dock Shipbuilders, Seema Srivastava of SMC Global Securities, said, "MDL has shown impressive financial growth, with EBITDA soaring 36.63% YoY to ₹ 1,104 crore in the quarter ended 31 December 2024. Operating margin improved to 25% in Q3 FY25, compared with 22% registered in Q3 FY24. The shipbuilding company's total order book stood at ₹ 34,787 crore as of 31 December 2024, and it is expected to sustain operations for the next 4-5 years. MDL's involvement in high-profile projects like the P-75 submarines and P-17A frigates positions it strategically in India's naval defence sector. Furthermore, the government's announcement of a ₹ 25,000 crore Maritime Development Fund is expected to bolster the shipbuilding industry, potentially benefiting MDL." Regarding HAL share price and valuations, Gaurav Goel, Founder and Director at Fynocrat Technologies, said, "HAL, with a market cap of ₹ 3.01 lakh crore, trades at a P/E ratio 34.8. It delivers excellent efficiency with an ROCE of 38.9% and an ROE of 28.9%. Its sales growth over five years has been 8.71%, but profit growth has been a strong 26.5%, indicating rising margins. HAL offers a solid mix of performance and fair valuation." "BEL, with a market cap of ₹ 2.30 lakh crore, trades at a higher P/E of 46.2. The company is strong on fundamentals, with a ROCE of 34.6% and ROE of 26.4%. It has delivered an impressive 5-year sales growth of 27.5%, but profit growth is slightly lower at 16%, possibly due to pricing or input costs. It remains a solid, stable player," said Gaurav Goel. "Mazagon Dock, the smallest in size at ₹ 1.18 lakh crore, surprises with the best efficiency metrics—ROCE at 44.2% and ROE at 35.2%. Its 5-year profit growth is 29.4%, while sales have grown by 15.5%. However, its P/E of 42.9 suggests that future growth expectations are already priced in," Gaurav Goel said. On her suggestion to investors looking at defence stocks amid rising drone attacks, Seema Srivastava said, "HAL offers substantial growth prospects with its expansive order book and strong financial performance. MDL presents a compelling case with its impressive revenue growth and strategic position in naval defence projects. BEL remains a stable choice due to its diversified portfolio and alignment with the government's defence initiatives. Each company presents unique opportunities, and investors should consider their individual investment goals and risk tolerance when deciding." "If you want a long-term, steady compounder, HAL stands out due to its leadership in aviation, improving profitability, and strong export potential. BEL is a good pick with consistent orders and tech expertise if you're after safe and stable growth with dividends. For short-term momentum plays, especially during war-related news cycles, Mazagon Dock might offer fast gains," Gaurav Goel of Fynocrat Technologies said. 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 making any investment decisions.
Mint
09-05-2025
- Business
- Mint
Stock market today: Canara Bank shares rise after Q4 results 2025. More steam left?
Stock market today: After a flat opening during morning deals on Friday, Canara Bank shares witnessed strong buying interest after the Opening Bell. After the announcement of Canara Bank Q4 results 2025 on Thursday, the bank's PSU stock was under the radar of the Indian stock market observers. Canara Bank share price today opened downside at ₹ 94.01 apiece on the NSE but the PSU stock soon came under the bulls' radar and touched an intraday high of ₹ 98.20 apiece, logging an intraday gain of around 3% against Thursday's close of ₹ 95.37 per share. According to stock market experts, Canara Bank shares are rising after strong Q4 2025 results were reported on Thursday. The PSU bank has reported strong fundamentals and is well-positioned for long-term growth, but the margin compression needs to be closely monitored. Decoding Canara Bank's Q4 results, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, "Canara Bank's financial performance for FY25 shows steady growth, the bank's global gross advances increased by 11.74% YoY to ₹ 10.73 lakh crore, driven by strong growth in Retail, Agriculture, MSME (RAM) loans, which grew 13.23%. Asset quality improved significantly with gross NPA reducing to 2.94% from 4.23%, and net NPA falling to 0.70% from 1.27%. Additionally, the Provision Coverage Ratio (PCR) rose to 92.70%, enhancing the bank's resilience against future shocks." "Canara Bank's capital adequacy remains strong, with a CRAR of 16.33%, supported by a solid CET1 ratio of 12.03%, providing room for growth. Profitability saw a significant jump, with net profit increasing by 33.15% to ₹ 5,003 crore. The dividend payout of ₹ 4 per share signals confidence in future earnings. However, the decline in Net Interest Income (NII) by 1.44% and the compression in NIM to 2.73% are areas of concern. These suggest margin pressures that could impact future profitability," Seema added. Expecting more upside in Canara Bank shares, Sumeet Bagadia, Executive Director at Choice Broking, said, "Canara Bank shares are looking strong on the technical chart. The PSU stock has made a strong base at ₹ 91, which is poised to touch ₹ 110 after a decisive close above ₹ 100. Canara Bank shareholders are advised to maintain the buy-on-dips strategy until the stock is above ₹ 91 for the short-term target of ₹ 110. Fresh investors can also initiate momentum buying and maintain a buy-on-dips strategy for the short-term target of ₹ 110. However, they must maintain a stop loss at ₹ 91 while taking any fresh position." On Thursday, May 8, Canara Bank reported a 33.15% year-on-year (YoY) rise in its standalone net profit to ₹ 5,002.66 crore for the March quarter of the last financial year (Q4FY25). The bank's net profit was ₹ 3,757.23 crore in Q4FY24. During the quarter, the PSU bank's total interest income was ₹ 31,002.04 crore, up 7.62% YoY against ₹ 28,807.35 crore. Operating profit grew 12.14% YoY to ₹ 8,284 crore from ₹ 7,387 crore in the same quarter of the previous financial year. The PSU bank's net interest income, a key measure of a bank's profitability, declined 1.44% YoY to ₹ 9,442 crore from ₹ 9,580 crore in Q4FY24. The net interest margin for the quarter dropped 25 basis points YoY to 2.80% from 3.05%. 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 taking any investment decisions.
Mint
09-05-2025
- Business
- Mint
ITC, HAL, BEL to Reliance: Experts pick 12 stocks to buy today amid India-Pakistan conflict
Stocks to buy today: Amid the escalation in the India-Pakistan conflict, the Indian stock market has shown strong resilience, while Pakistan has been under immense selling pressure. The frontline index KSE 100 tumbled over 7% on Thursday, while the Indian frontline index Nifty 50 remained above its crucial support at 24,050. According to stock market experts, historical data suggests the Indian stock market may correct 5-10 per cent in the wake of India-Pakistan tension. However, they predicted a sharp recovery once the tension eases. So, it is important to discount the India-Pakistan war-like situation by adding value picks in one's portfolio. Experts said savvy investors can find value picks in defence, FMCG, banking, telecom and capital goods segments. "The escalating tensions between India and Pakistan in 2025, marked by events such as the Pahalgam terror attack and India's Operation Sindoor, have introduced fresh volatility into the Indian stock market. However, historical trends suggest that Indian equities, particularly the Nifty 50, have demonstrated resilience during past geopolitical conflicts, with corrections typically limited to 5–10% and recoveries often swift," said Seema Srivastava, Senior Research Analyst at SMC Global Securities. On segments where one can find value picks with ease, Seema Srivastava said, "Against the backdrop of India-Pakistan conflict, certain sectors and stocks present compelling opportunities for investors seeking stability and long-term value. Notably, sectors such as defence and aerospace, banking and financial services, fast-moving consumer goods (FMCG), telecommunications, agrochemicals, and capital goods stand out for their resilience and alignment with India's domestic growth story. Within these sectors, carefully selected stocks offer a blend of defensive strength and growth potential, making them attractive value picks during this period of uncertainty." On why one should buy defence stocks in the backdrop of India-Pakistan war-like situation, Seema Srivastava said, "The defence and aerospace sector emerges as a prime beneficiary of heightened tensions, with increased government spending on security fueling demand for indigenous military equipment and technology. Hindustan Aeronautics Ltd. (HAL) and Bharat Electronics Ltd. (BEL) are well-positioned due to their critical roles in aircraft manufacturing and defence electronics, respectively. Bharat Dynamics Ltd. (BDL), a missile systems manufacturer, and Mazagon Dock Shipbuilders Ltd., a key naval contractor, benefit from strong government contracts and export opportunities. These stocks are widely held by mutual funds and foreign institutional investors (FIIs), reflecting strong market confidence in their long-term prospects." Advising investors to look at banking stocks, Seema Srivastava of SMC Global Securities, said, "In the banking and financial services sector, large-cap private banks such as HDFC Bank Ltd., Axis Bank, and ICICI Bank Ltd. offer stability amid geopolitical volatility. Their robust balance sheets and minimal exposure to global trade disruptions make them appealing during uncertain times. Despite a recent 4.8% drop in the Nifty PSU Bank index, these private banks are expected to rebound, supported by India's healthy domestic growth and sustained FII inflows. Their defensive nature and attractive valuations enhance their appeal as safe investments during market corrections." Batting in favour of FMCG stocks, Seema Srivastava said, "The FMCG sector remains a classic defensive play, underpinned by steady domestic consumption. ITC Ltd., with its diversified portfolio, and Hindustan Unilever Ltd. (HUL), a market leader in consumer goods, are resilient to geopolitical shocks. These companies enjoy strong brand loyalty, steady cash flows, and minimal external dependencies, making them reliable picks for risk-averse investors seeking consistency in earnings." "The agrochemical sector also offers stability due to its domestic focus and essential role in supporting Indian agriculture. While geopolitical uncertainty may cause short-term market corrections, demand for fertilisers and pesticides remains consistent, driven by India's farming needs. UPL Ltd., with its global reach and strong domestic operations, PI Industries Ltd., known for its innovation in crop protection, and Bayer CropScience Ltd., supported by a premium brand portfolio, are well-positioned to weather volatility and deliver value," Seema added. The SMC expert said that telecom stocks can also be a good bet amid rising tension between Indian and Pakistan, saying, "Telecommunications is another resilient sector, as national security concerns highlight the need for robust and secure communication networks. Bharti Airtel Ltd., a major industry player, and Reliance Industries Ltd., through its telecom arm Jio, are crucial to India's digital infrastructure. Airtel is set to benefit from ongoing infrastructure investments, while Jio leverages Reliance's diversified ecosystem. Their strategic roles and strong domestic footprints make them appealing during geopolitical stress." Capital goods, driven by India's infrastructure and manufacturing push, offer further opportunities for long-term investors. Companies like Larsen & Toubro Ltd. (L&T), Kec International and Siemens Ltd. are less affected by external shocks due to their strong domestic order books and alignment with government-led capital expenditure initiatives. Their execution capabilities and long-term project pipelines position them well for continued growth. "In conclusion, investors should remain focused on large-cap stocks for stability, maintain diversification across resilient sectors, and avoid panic selling, as history indicates strong post-conflict recoveries. While risks such as earnings pressure or conflict escalation remain, stocks like HAL, BEL, BDL, Mazagon Dock, HDFC Bank, ICICI Bank, ITC, HUL, Airtel, Reliance, L&T, and Siemens offer a balanced mix of safety and growth," said Seema Srivastava of SMC Global Securities. On stocks looking strong on the technical chart, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said, "Out of these 12 stocks, seven are looking very strong on the technical chart pattern. Those seven stocks are HAL, BEL, Mazagon Dock Shipbuilders, ICICI Bank, ITC, Bharti Airtel, and Reliance Industries Ltd (RIL). 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 taking any investment decisions.
