Hal, Bel, Bdl, Grse, Ptc Industries: Q4 Previews, Defence Stocks To Buy, Target Prices & More

PTC Industries, Zen Technologies, Astra Microwave and Azad Engineering are immoderate of nan defence players that could denote 50-175 per cent year-on-year emergence successful March 4th profits. Bharat Dynamics Ltd (BDL) and PTC Industries whitethorn study doubling of Q4 sales, ICICI Securities suggested successful its preview statement connected defence sector. While Q4FY25 was a small low-key matter for defence players pinch home focus, exports-oriented players are expected to fare better, ICICI Securities said. 

Among defence PSUs, ICICI Secuities said gross maturation of (103 per cent YoY) is expected to beryllium nan highest for BDL arsenic execution issues pertaining to MRSAM are behind. Revenue maturation of PTC Industries is seen aided by nan consolidation of Trac Precision -- pinch gross complaint of Rs 300 crore per annum. Solar Industries whitethorn besides spot beardown 47 per cent income growth, gaining from continued traction successful defence and export & overseas segments, though traction successful India business remained comparatively weak. 

Azad Engineering whitethorn grounds gross maturation of 32 per cent YoY pinch patient Ebitda separator of 35 per cent, ICICI Securities said. Meanwhile, a driblet successful gross maturation (YoY) is expected for HAL, successful statement pinch its execution plan. 

"Going ahead, we expect execution astatine HAL to prime up, pursuing transportation of F404 motor by GE Aerospace. In lawsuit of SOIL, we expect gross from defence conception to emergence 2x YoY to INR 27bn successful FY26E, chiefly owed to execution of export orders. Among aerospace players, we expect bid traction to prolong for some Azad and PTC Industries arsenic they are portion of world proviso chains of OEMs. We judge capacity utilisation astatine some these companies is nan cardinal for their net growth," nan brokerage said. 

For Astra Microwave, ICICI Securities expects continued traction successful home defence business to assistance net growth. Closing orderbook apt to beryllium nan highest-ever, it said.

BDL's income growth, some YoY and QoQ, are apt driven by nan execution of pending MRSAM order. ICICI Secuirties expects execution to amended further arsenic Akash bid starts getting executed from Q1FY26.

The home brokerage is factoring successful little Ebitda margin, successful statement pinch execution scheme and company’s yearly guidance.Commentary connected bid inflow will beryllium critical.

In nan lawsuit of Garden Reach Shipbuilders, deliveries of vessels were arsenic per nan schedule and milestone-based payments for nan aforesaid could thrust net growth. 

ICICI Securities believes HAL's income maturation was impacted by lower-than expected manufacturing gross successful Q4 owed to operational issues for ALH Dhruv and hold successful proviso of F-404 engines. MIDHANI's income maturation apt to stay broadly unchangeable YoY and nan betterment successful Ebitda separator could consequence successful net growth.

The brokerage pegged Solar Industries' defence gross astatine Rs 420 crore successful Q4FY25 contempt home execution delays. Exports and overseas segments whitethorn do good successful Q4FY25, it said.

For Azad Engineering, ICICI Securities expects gross maturation of 32 per cent YoY and Ebitda separator of 35 per cent YoY, acknowledgment to aerospace conception and caller bid wins.

Dynamatic Technologies' aerospace conception whitethorn proceed to do well, but hydraulics conception could languish. Positive commentary for metallurgy segment, driven by EU request for ammunition, is likely. 

For Zen Technologies, patient execution is apt connected nan backmost of orders already successful place. The institution could execute its FY25 guidance, ICICI Securities said.

Published on: Apr 24, 2025 11:35 AM IST