HAL vs Bharat Dynamics vs. Mazagon Dock Shipbuilders: Q1 outcomes 2025 season is sort of over, and Indian inventory market traders are busy discovering their worth picks. Amid rising commerce conflict fears and geopolitical rigidity, most specialists are batting in favour of defence shares with sturdy fundamentals. The Q1 earnings of defence corporations could be a vital consider inventory traders’ resolution to make any funding.
Consultants say Hindustan Aeronautics Ltd (HAL) has delivered regular operational progress, whereas Bharat Dynamics Ltd reported softer-than-expected Q1 2025 outcomes. They stated Mazagon Dock Shipbuilders Restricted’s Q1 FY26 outcomes mirror near-term profitability pressures, with internet revenue down 35% YoY and EBITDA margins contracting sharply on account of greater procurement and manpower prices.
HAL Q1 outcomes 2025 evaluation
Talking on Q1 outcomes 2025 of the main defence PSUs, Putta Ravi Kumar, Analyst – Defence Sector at Selection Broking, stated, “HAL has delivered regular operational progress, however the important thing bottleneck proper now could be GE engine provide for the Tejas programme. Even when GE fails to ship on time, we don’t see this derailing the corporate’s financials, given its wide-ranging portfolio — from LCH Prachand and Su-30 upgrades to civilian plane and area programmes. The tempo of income recognition from its flagship fighter plane order shall be partially contingent on engine deliveries. The order e-book at ~6.1x FY25 revenues is highly effective, and the current correction does make valuations engaging. Nevertheless, a lot of HAL’s near-term triggers hinge on execution timelines for big, ongoing initiatives.”
Bharat Dynamics Q1 outcomes evaluation
“Bharat Dynamics Ltd, then again, regardless of a softer-than-expected Q1, we proceed to imagine that the corporate is well-placed to ship a robust set of numbers over the subsequent 2 years, supported by a number of programmes transferring into manufacturing stage — together with QRSAM, MRSAM, Akash NG, ATGMs, Torpedoes, and a number of other different key platforms. In our view, BDL’s strategic monopoly as India’s solely missile system integrator and its sturdy order e-book at ~6.8x FY25 income present distinctive income visibility. We anticipate ~ ₹200 Bn in recent orders over the subsequent 2 years, along with replenishment demand arising from emergency procurement put up Operation Sindoor,” the Selection Broking skilled stated.
Mazagon Dock Q1 outcomes evaluation
Talking on Mazagon Dock Shipbuilders’ Q1 earnings, Seema Srivastava, Senior Analysis Analyst at SMC World Securities, stated, “Mazagon Dock Shipbuilders Restricted’s Q1 FY26 outcomes mirror near-term profitability pressures, with internet revenue down 35% YoY and EBITDA margins contracting sharply on account of greater procurement and human assets prices. Nevertheless, the corporate’s long-term funding case stays sturdy, anchored by its strategic function in India’s naval modernisation and a strong monetary observe file. Between FY21–24, MDL delivered distinctive development with ~33% CAGR in income and ~47% CAGR in internet revenue, supported by industry-leading return ratios (ROE ~27%, ROCE ~33%) and a debt-free steadiness sheet, enabling self-funded capability enlargement. Key strategic initiatives such because the upcoming Nhava dry dock facility, which can double shipbuilding capability, and the proposed majority stake in Colombo Dockyard to develop into export markets spotlight administration’s intent to scale operations past home contracts. The sturdy defence order pipeline, notably in submarines, destroyers, and frigates, ensures multi-year income visibility.”
“Whereas FY26 might even see margin volatility from execution cycles and enter prices, MDL’s operational leverage, enlargement into higher-value initiatives, and export diversification ought to drive gradual profitability restoration. Given its strategic significance, technological capabilities, and capability development, MDL is well-positioned to seize long-term worth from India’s rising defence spend and world naval procurement alternatives,” Seema added.
HAL vs Bharat Dynamics vs Mazagon Dock Shipbuilders
On which defence PSU inventory to purchase, Putta Ravi Kumar of Selection Broking stated, “From the basic perspective, HAL and BDL are sturdy defence performs and each are high quality buys, however HAL stands out as a gradual, long-term compounder backed by a diversified portfolio and a strong order e-book. BDL additionally provides good potential and could be a tactical addition for the close to time period, however for traders on the lookout for constant development and stability, HAL stays the stronger core holding.”
On what technical chart suggests about these three defence PSU shares, Shiju Kuthupalakkal, Senior Supervisor of Technical Analysis at Prabhudas Lilladher, stated, “Amongst HAL, BDL and MAZDOCK, I shall choose HAL among the many three shares with technical parameters indicating a beneficial method and might anticipate a lot greater returns. The inventory has corrected from the excessive degree of ₹5165 to point out indicators of taking assist close to the essential 200-period SMA at ₹4315 zone, and with a sign of a revival, there’s enchancment within the bias. The RSI has arrived close to the oversold zone and indicated a optimistic development reversal, signalling a purchase, which can also be accompanied by a optimistic divergence indication on the day by day chart. The inventory, as soon as breached above the 50-DEMA zone on the ₹4670 degree, would additional strengthen the development, anticipating an extra rise within the coming days. With assist maintained close to the ₹4300 degree, one can anticipate positional targets of ₹4940, ₹5170 and ₹5700 ranges within the coming days.”
Disclaimer: This story is for instructional functions solely. The views and suggestions above are these of particular person analysts or broking corporations, not Mint. We advise traders to examine with licensed specialists earlier than making any funding choices.
