MOFSL Maintains Ratings on Defence Firms; Expects Growth in Q3 Earnings for BEL, BDL, and HAL
MOFSL has maintained a 'Buy' rating on Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), and Hindustan Aeronautics Ltd (HAL), projecting significant Q3 earnings growth for these firms. BEL is expected to report a 13% YoY profit increase to Rs 1,487.30 crore, while BDL's profit may rise by 40.4% YoY to Rs 206.60 crore, and HAL's profit could grow by 29.1% YoY to Rs 1,859.30 crore. In contrast, Astra Microwave is projected to face a 35.7% YoY profit decline.
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MOFSL has maintained a 'Buy' rating on Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Hindustan Aeronautics Ltd (HAL), and Astra Microwave, while assigning a 'Neutral' rating to Zen Technologies. BEL is identified as the top defence pick.
The brokerage projects BEL's Q3 profit to be Rs 1,487.30 crore, a 13% YoY increase, with sales growing 17.8% YoY to Rs 6,780 crore. BDL is expected to report a 40.4% YoY profit growth to Rs 206.60 crore, with sales rising 37.6% YoY to Rs 1,145.30 crore.
HAL's profit may increase by 29.1% YoY to Rs 1,859.30 crore, alongside a 13.2% YoY sales rise to Rs 7,874.50 crore. Conversely, Astra Microwave is projected to see a 35.7% YoY profit decline to Rs 30.50 crore.
The DAC approved capital acquisition proposals worth Rs 79,000 crore in its winter session, increasing FY26 year-to-date approvals to Rs 3.3 lakh crore, nearly double the defense capital outlay. The DAC has extended the emergency procurement window for the Armed Forces until mid-January 2026. Additionally, user trials for the Akash-NG system have been completed, and the Government of India has announced guidelines for two major shipbuilding schemes with a combined outlay of INR 447 billion.
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