HAL vs BEL vs Mazagon Dock: Which defence stock to buy amid stock market crash | Stock Market News

Stocks to buy: The recent stock market crash has heavily beaten many quality stocks. The quality stocks include defence stocks as well. To the surprise of the Indian stock market investors, this has happened despite strong Q2 results in 2024. According to stock market experts, Hindustan Aeronautic Limited (HAL), Bharat Electronics Ltd (BEL), and Mazagon Dock Shipbuilders have delivered decent second-quarter numbers in FY2024-25. Hence, this stock market crash is an opportunity to add or accumulate these defence stocks. In the wake of Donald Trump’s victory in the US presidential elections, they believe the US administration would provide the defence technologies that were delayed during Biden’s tenure.

HAL vs BEL vs Mazagon Dock Shipbuilders

Speaking on which share is better in the defence segment, Mahesh M Ojha, AVP—Research at Hensex Securities, said, “Most of the defence companies have reported their Q2FY25 results in synch with the market estimates. However, HAL and BEL beat the market expectations, qualifying them as an automatic choice for inclusion or accumulation in one’s portfolio.”

Mahesh M Ojha of Hensex Securities added, “During Joe Biden’s tenure, some defence technologies promised to the Indian defence companies were delayed, and they are expected to come to India hassle-free during Donald Trump’s tenure. Looking at Donald Trump’s speech post-victory, he will put pressure on China that may renew the trade war once again. So, defence expenditure is expected to go up, and hence, the market expects better quarterly numbers from defence companies in upcoming quarters.”

Speaking on HAL vs BEL vs Mazagon Dock Shipbuilders, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “In the wake of defence technology transfer and Donald Trump’s previous four-year tenure, HAL is expected to reap the maximum benefit as the technology would come to HAL, and hence, one should buy HAL shares ahead of the other two defence stocks.”

“In the medium to long term, one can expect around 15 percent CAGR on one’s money from HAL shares,” said Mahesh M Ojha of Hensex Securities.

Hindustan Aeronautics Ltd (HAL), the state-run defence company, reported a 22.4% rise in its consolidated net profit for the second quarter of FY25 to ₹1,510.49 crore from ₹1,236.67 crore in the year-ago quarter.

The consolidated revenue from operations of Hindustan Aeronautics in Q2FY25 increased 6% to ₹5,976.29 crore from ₹5,635.70 crore, year-on-year (YoY).

At the operational level, HAL’s earnings before interest, tax, depreciation, and amortization (EBITDA) during the quarter ended September grew 7.3% to ₹1,640 crore from ₹1,527.7 crore, while the EBITDA margin improved to 27.4% from 27.1% YoY.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.