1 hr ago
MOFSL Previews Q2 Defence Results, Names Top Stock Targets
MOFSL has shared what it expects from five defence companies in the second quarter.
It expects some companies to sell and deliver more than they did a year earlier, while Bharat Dynamics may report lower revenue because last year's activity was unusually high.
The forecasts also discuss whether each company’s profit margins may rise or fall.
MOFSL highlighted orders, deliveries, and production progress that investors may want to watch.
It also gave target prices for all five shares.
These are the brokerage’s estimates and targets, not guaranteed results.
The article does not identify one company as its top pick.
MOFSL expects Bharat Dynamics revenue to fall 19% year over year, with margins down 130 basis points, and set a target price of Rs 1,210.
For Bharat Electronics, MOFSL forecasts 16% revenue growth and a 27.7% margin; its Rs 530 target implies 38% potential upside.
MOFSL forecasts Hindustan Aeronautics revenue growth of 14% and margin expansion to 24.5%, with a Rs 5,800 target.
Astra Microwave is expected to post 14% revenue growth and a 22% EBITDA margin; MOFSL set a Rs 1,900 target and a Buy rating.
MOFSL expects Zen Technologies execution to rise 99%, with a 32% EBITDA margin, and set a target price of Rs 1,600.
- Who
- MOFSL and the defence companies Bharat Dynamics, Bharat Electronics, Hindustan Aeronautics, Astra Microwave Products, and Zen Technologies.
- What
- MOFSL issued Q2 results expectations, key monitorables, and stock target prices for the five companies.
- Where
- Not specified in the article.
- When
- The preview concerns Q2FY27.
- Why
- To outline expected company performance and developments investors should monitor.
MOFSL outlook
Uncertainties and monitorables
Expected results versus execution risks
MOFSL outlook
MOFSL forecasts revenue growth for BEL, HAL, and Astra Microwave, and sharply higher execution for Zen Technologies.
Uncertainties and monitorables
The forecasts depend on order execution, product mix, delivery schedules, order inflows, margins, and other developments that MOFSL says should be monitored.
Bharat Dynamics performance
MOFSL outlook
MOFSL expects a sequential revenue improvement as execution on Akash and Astra Mk-1 picks up from Q2FY27 onwards.
Uncertainties and monitorables
It also expects a 19% year-over-year revenue decline against a high prior-year base and lower margins, partly due to bought-out components.
Key facts
- Bharat Dynamics target
- Rs 1,210; MOFSL expects revenue to decline 19% year over year and margins to fall 130 basis points to 15%.
- Bharat Electronics target
- Rs 530, implying 38% potential upside; expected revenue growth is 16% year over year and margin is 27.7%.
- Hindustan Aeronautics target
- Rs 5,800, implying 26% potential upside; expected revenue growth is 14% year over year and EBITDA margin is 24.5%.
- Astra Microwave target
- Rs 1,900, with a Buy rating and 17% potential upside; expected revenue growth is 14% and EBITDA margin is 22%.
- Zen Technologies target
- Rs 1,600; MOFSL expects execution to increase 99% and EBITDA margin to remain at 32%.
- BEL opening order book
- Rs 72,000 crore.
- Astra Microwave order book
- Rs 2,200 crore.
Quotes
MOFSL
Brokerage whose Q2 expectations and target prices are reported.
“We expect Ebitda margin to remain healthy at 32 per cent, which can improve going forward as high-margin simulator orders get executed.”
businesstoday.in
“We expect margins to fall by 130 bps YoY to 15 per cent, because of higher bought out components for Akash and Astra Mk1 platforms.”
businesstoday.in
Sources
Related news
HSBC Sets Mixed Targets for Indian Defence Stocks
Emkay Favors HAL as Defence Stocks Target 26% Upside
HSBC Begins Coverage of Seven Indian Defence Stocks
Defence Stocks Rally After ₹1.1 Lakh Crore DAC Approvals
India’s Defence Procurement Push Lifts Brokerage Hopes For Stocks
Jefferies Sets Defence Stock Targets, Favors Solar and Astra
Brokerages Assess HDFC Bank After Anup Bagchi Appointment
Two Debt-Free Dental Manufacturers Post Strong Quarterly Profit Growth
Nifty 500 Stocks Slide as Oil and Yields Pressure Markets
Shriram Finance Gains 45%, but Analysts Debate Buying Opportunity
