Latest news with #MOFSL
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Business Standard
6 hours ago
- Business
- Business Standard
What's firing up Bharat Dynamics? 8 reasons behind MOFSL's positive view
MOFSL on Bharat Dynamics: Ammunition and missile systems manufacturers Bharat Dynamics Limited (BDL) shares were in focus on Thursday, July 10, 2025 after Motilal Oswal Financial Services (MOFSL) initiated coverage on the stock. On the bourses, however, Bharat Dynamics' share price fell 2.53 per cent to an intraday low of ₹1,934.80. Around 9:50 AM, the Bharat Dynamics share was trading 1.60 per cent lower at ₹1,953.30 per share, while the benchmark BSE Sensex was down 0.12 per cent at 83,434.31 levels. MOFSL today initiated coverage on Bharat Dynamics with a 'Neutral' rating and a target price of ₹1,900, indicating a downside of 4 per cent from current levels. 'The stock currently trades at 70x/52x/38x P/E on FY26/27/FY28 estimates. We initiate coverage on the stock with a 'Neutral' rating and a target price (TP) of ₹1,900 based on 42x September'27E P/E,' Teena Virmani and Prerit Jain, research analysts at MOFSL said, in a note dated July 10. Motilal Oswal analysts said that they like Bharat Dynamics' business model and strong growth potential but would prefer lower entry points given current valuations. They also flagged risks including any potential cut or reprioritisation in India's defence budget, contract cancellations or failures, changing procurement rules, and supply chain disruptions. Meanwhile, here are the 8 key reasons behind MOFSL's coverage initiation: Rising global spend boosts Indian defence According to MOFSL, NATO's recent commitment to raise defence spending to 5 per cent of GDP by CY35 has strengthened the outlook for global defence players, with indirect positive implications for India. This, analysts believe, could lead to India boosting its own defence budget and create new export opportunities for domestic players. Additionally, India's own emergency procurement drive and the Defence Acquisition Council's (DAC) recent approvals worth ₹1 trillion are expected to considerably expand the addressable market for companies like BDL. Positive industry tailwinds The company's estimated addressable market size is around ₹50,000 crore, driven by missile procurements across platforms including submarines (Project 75I), fighter jets (LCA Tejas Mk1A, Su-30MKI), and helicopters (LCH Prachand, ALH Dhruv). Continued demand for systems like QRSAM, MRSAM, NAG, and VSHORAD, alongside existing long-term contracts for high-value imports like S-400 and Barak-8, analysts highlighted, are expected to fuel growth. Export demand, especially for Akash missile systems, will also support order inflow. Emerging as a leading integrator of missile platforms MOFSL said Bharat Dynamics has transformed from a missile manufacturer into an end-to-end weapon systems integrator for the Army, Navy, and Air Force. It is expanding into drone-delivered payloads, guided bombs, warhead and engine manufacturing, and other segments such as mines and propellants. The company is actively exploring new partnerships with foreign original equipment manufacturers (OEMs) and continues to work closely with DRDO on a range of high-impact defence programs. Strong order book, easing supply chain issues to scale up revenue As of FY25-end, the missile maker's order book stood at ₹22,700 crore, registering a healthy compound annual growth rate (CAGR) of 27 per cent over FY20–24, driven by large deals related to Akash, Konkur, and exports. While supply chain bottlenecks due to the Russia-Ukraine conflict and regional geopolitical tensions in Israel had earlier impacted revenue conversion, MOFSL noted that these issues have begun to ease. With execution expected to normalise, the company is now projected to deliver a 35 per cent revenue CAGR over FY25–28. Focus on indigenisation Bharat Dynamics has been consistently localising its platforms, with import dependence falling majorly over the years. The company now achieves 80–90 per cent indigenisation on several missile systems, which boosts its ability to compete independently in domestic tenders. As a key development partner to DRDO for about 40 projects, BDL is well-positioned to capitalise on indigenous defence production as more projects move into the manufacturing phase. Continuous capacity growth, research efforts to minimise reliance on imports The company has expanded its in-house production capabilities with new facilities like the integrated Radio Frequency Seeker Unit at Kanchanbagh, aimed at producing and testing critical missile components. It is also increasing its capacity to manufacture next-gen SAMs, VSHORAD rockets, ATGM propellants, and more. R&D spending has risen sharply over the past two years, with ongoing efforts in both new product development and upgrading legacy systems to meet emerging operational requirements. Boosting exports BDL's export momentum has picked up sharply following government approvals for Akash system exports to nine countries. Export revenues rose to ₹1,200 crore in FY25 from ₹160 crore in FY24. The company's growing global portfolio includes Akash (SAM), Astra (Air-to-Air), Helina (Air-to-Surface), anti-airfield weapons, various torpedoes, and anti-tank missiles such as Konkurs-M and Milan-2T. Lightweight torpedoes have already been exported, and other products are seeing increasing interest globally. Strong financial outlook MOFSL projects a 35 per cent revenue CAGR and 51 per cent PAT CAGR for BDL over FY25–28, driven by improved execution and easing supply chain margins are expected to strengthen from 23.8 per cent in FY26 to 25.5 per cent by FY28, aided by indigenisation and lower provisioning. With a steady capex of ₹200–300 crore annually and efficient working capital management, the company's return on equity (RoE) and return on capital employed (RoCE) are projected to rise to 25.2 per cent and 25.6 per cent, respectively, by FY28.
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Business Standard
a day ago
- Business
- Business Standard
Delhivery rises 2% as MOFSL initiates coverage with 'Buy'; 18% upside eyed
Delhivery share popped after Motilal Oswal Financial Services (MOFSL) initiated coverage on the company with a 'Buy' rating and a target price of ₹460, implying an 18% upside. Tanmay Tiwary New Delhi Delhivery share price: Logistics major Delhivery shares were in focus on Wednesday, July 9, 2025, rising as much as 1.99 per cent to hit an intraday high of ₹417.50 apiece. At 9:41 AM, Delhivery shares continued to trade near day's high level, up 2.09 per cent at ₹417.50 on the BSE, even as the benchmark Sensex was down 0.17 per cent at 83,569.51 levels. Why did Delhivery shares rise today? The Delhivery share popped after domestic brokerage Motilal Oswal Financial Services (MOFSL) initiated coverage on Delhivery with a 'Buy' rating and a target price of ₹460, implying an 18 per cent upside. 'We initiate coverage on Delhivery with a 'Buy' rating. We value the company using DCF, arriving at a TP of ₹480 based on a WACC of 12 per cent and terminal growth rate of 5 per cent (implied EV/Ebitda of 36x on FY28),' MOFSL said in a note. Strong position in express logistics; asset-light model According to MOFSL, Delhivery has built a strong foothold in the express logistics segment since 2011 and continues to scale in the high-margin partial truckload (PTL) market. The company operates an asset-light model with minimal owned vehicles and leased infrastructure, servicing ~19,000 pin codes across India. Key beneficiary of express logistics boom With express delivery demand rising across Tier 2/3 cities, analysts at MOFSL believe the segment is expected to grow at a 14 per cent CAGR over FY23–28. Delhivery's expanding customer base, new category launches, and e-commerce penetration (D2C, social commerce, omnichannel) position it well. Its e-commerce express market share doubled to ~25 per cent in FY24 (ex-captive: ~40 per cent) from ~12 per cent in FY19. Established 3PL network with scale advantage Delhivery has emerged as a leading third-party logistics (3PL) player, backed by major infrastructure, including 111 gateways, 45 automated sort centres, and 20 million sq ft of space, MOFSL highlighted. It serves 44,000 customers, enabling large-scale, on-time parcel handling. 14% revenue CAGR seen over FY25–28 After a 32 per cent revenue CAGR in FY19–25, MOFSL expects Delhivery to post a 14 per cent CAGR over FY25–28, driven by PTL industry growth (18 per cent CAGR), scale benefits post-Spoton integration, and rising share of integrated solutions (~60 per cent of revenue from customers using multiple services). The acquisition of Ecom Express is seen boosting its express logistics footprint further, the brokerage said. Margin expansion led by volumes and PTL With higher volumes, Delhivery is expected to benefit from operating leverage in express parcels. The Partial Truckload (PTL) segment, a high-margin business, is expected to contribute majorly to profitability post-Spoton integration. The Ebitda margin is estimated to rise from 4.2 per cent in FY25 to 7 per cent by FY28. Well-set to capture long-term opportunity Delhivery turned Ebitda positive in FY25 with ₹370 crore, recovering from a ₹1600 crore loss in FY19. MOFSL sees Ebitda and adjusted PAT (APAT) growing at 36 per cent and 52 per cent CAGR, respectively, during FY25–28, and return on equity (RoE) improving to 5.6 per cent in FY28 from 1.8 per cent in FY25. Backed by volume growth, cost efficiency, and stronger offerings, the brokerage believes Delhivery is well-positioned to tap the long-term potential in express logistics.
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Business Standard
2 days ago
- Business
- Business Standard
Siemens Energy gains 3%, hits new high on healthy March quarter results
Siemens Energy India share price Shares of Siemens Energy India hit a new high of ₹3,105.95, gaining 3 per cent on the BSE in Tuesday's intra-day trade in an otherwise subdued market after the company reported a healthy earnings for the quarter ended March 2025 (Q2FY25). In the past two trading days, the stock price of this heavy electrical equipment company has rallied 7 per cent. It has recovered 23 per cent from its 52-week low of ₹2,529 touched on June 24, 2025. The company made its stock market debut on June 19, 2025. Siemens Energy India is demerged from Siemens focuses on Transmission and Distribution (T&D) as well as small-sized turbines. Siemens group follows September as its year-end. The shareholders of Siemens received 1 share of Siemens Energy India for each 1 share held in Siemens. Siemens Energy India will provide solutions across the entire energy value chain - from power and heat generation, transmission to storage through a portfolio that includes conventional and renewable energy technology such as gas and steam turbines, hybrid power plants operated with hydrogen as well as power generators and transformers. Siemens Energy India Q2FY25 result Siemens Energy India reported better-than-expected analysts estimates. The comparable numbers for the previous period are not available. Revenue growth improved 24 per cent quarter-on-quarter (QoQ) at ₹1,880 crore and earnings before interest, taxes, depreciation and amortisation (EBITDA) margin stood strong at 19.1 per cent for the quarter, driven by strong margins in the power transmission segment. Margins were soft in the power generation segment. EBITDA margin has been continuously improving for the company for the past two quarters even after adjusting one-off items. Brokerages view on Siemens Energy India Based on 1HFY25 performance, Motilal Oswal Financial Services (MOFSL) said they raised estimates by 13 per cent/6 per cent/8 per cent for FY25E/FY26E/FY27E to bake in improved execution and margin in the power transmission segment. The brokerage firm expects Siemens Energy India to continue to benefit from a strong addressable market in T&D as well as its planned capacity expansion in the transmission segment. Accordingly, MOFSL said they estimate a CAGR of 27 per cent/29 per cent in revenue/PAT over FY25-27. The brokerage firm retained its 'BUY' rating on the stock with a revised target price of ₹3,300 (from ₹3,000), based on 60x September 2027E EPS. Analysts expect Siemens Energy India's Power Transmission segment to grow much faster, as it is well-placed to benefit from planned investments of ₹ 3 trillion in T&D over FY25-30, primarily in HV lines of 400kV and 765kV, given their crucial role in inter-state transmission lines. Siemens is among the few players with a presence in high voltage lines up to 765kV and is, hence, expected to benefit from planned investments. Going forward, Siemens Energy is placed to benefit from energy transition tailwinds in India and a healthy order book. However, the power generation business margins have declined and will be a drag on the overall company's growth, ICICI Securities said in a note.
Economic Times
3 days ago
- Business
- Economic Times
Q1 earnings season kicks-off with TCS results on July 10. Check key dates for HDFC Bank, ICICI Bank & more
Earnings season will kick off on Thursday, with India's IT bellwether Tata Consultancy Services (TCS) announcing its Q1FY26 results. Avenue Supermarts, which operates DMart stores, will be next in line, reporting its quarterly numbers on Friday, July 11. So far, results data for 180 BSE-listed companies are available on the exchange. Nifty companies with scheduled earnings dates: July 14, Monday: HCL TechnologiesJuly 15, Tuesday: HDFC Life Insurance CompanyJuly 16, Wednesday: Tech Mahindra July 17, Thursday: Axis BankJuly 19, Saturday: HDFC BankJuly 19, Saturday: ICICI Bank July 21, Monday: UltraTech Cement July 23, Wednesday: Dr Reddy's Laboratories, Infosys July 24, Thursday: Bajaj Finance, Nestle India July 25, Friday: Bajaj Finserv, Cipla July 29, Tuesday: Asian Paints August 12, Tuesday: Hindalco Industries According to brokerage firm Motilal Oswal Financial Services (MOFSL), Nifty is expected to report a modest 5% year-on-year (YoY) growth when the June quarter results season begins July 10 with TCS leading the charge. In its view, Q1 will likely mark the critical inflection point from months of subdued single-digit growth. "We perceive 1QFY26 as the 'Crossover quarter,' which should mark the crossing-over from a subdued low-single-digit earnings growth of FY25 towards a more sustainable double-digit earnings growth over the four subsequent quarters," Motilal Oswal said in its latest research note. The brokerage's bottom-up analyst estimates project a sharp acceleration ahead, with MOFSL universe earnings expected to surge 10% YoY in Q1, followed by an impressive 12%/15%/14% growth trajectory in the subsequent three quarters. The Nifty is forecast to post 5% growth in Q1, then accelerate to 6%/13%/16% in the following quarters. Multiple sectors are expected to deliver double-digit profit growth, with real estate leading the charge at 40%, followed by EMS at 46%, cement at 35%, and retail at 23%."The number of sectors likely to post negative growth is expected to be lower at 2 (Autos and Metals) in 1QFY26 vs. 6 sectors in FY25 – indicating improving dispersion of growth," the brokerage noted. Significantly, for the full year FY26, Motilal Oswal currently doesn't factor any sector to post negative profit oil & gas sector is expected to be the primary driver, with a massive 42% year-on-year growth fueled by oil marketing companies. Telecom is set for a dramatic turnaround from losses to profit, while other key contributors include technology (+7%), lending NBFCs (+8%), PSU banks (+5%), and healthcare (+11%) – collectively accounting for 89% of the incremental earnings growth. Also Read: Q1 results season: The crossover quarter that could end India's growth drought (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
3 days ago
- Business
- Time of India
Q1 earnings season kicks-off with TCS results on July 10. Check key dates for HDFC Bank, ICICI Bank & more
Earnings season will kick off on Thursday, with India's IT bellwether Tata Consultancy Services ( TCS ) announcing its Q1FY26 results. Avenue Supermarts , which operates DMart stores, will be next in line, reporting its quarterly numbers on Friday, July 11. So far, results data for 180 BSE-listed companies are available on the exchange. Nifty companies with scheduled earnings dates: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas In Dubai | Search Ads Get Rates July 14, Monday: HCL Technologies July 15, Tuesday: HDFC Life Insurance Company July 16, Wednesday: Tech Mahindra Live Events July 17, Thursday: Axis Bank July 19, Saturday: HDFC Bank July 19, Saturday: ICICI Bank July 21, Monday: UltraTech Cement July 23, Wednesday: Dr Reddy's Laboratories , Infosys July 24, Thursday: Bajaj Finance , Nestle India July 25, Friday: Bajaj Finserv , Cipla July 29, Tuesday: Asian Paints August 12, Tuesday: Hindalco Industries According to brokerage firm Motilal Oswal Financial Services (MOFSL), Nifty is expected to report a modest 5% year-on-year (YoY) growth when the June quarter results season begins July 10 with TCS leading the charge. In its view, Q1 will likely mark the critical inflection point from months of subdued single-digit growth. "We perceive 1QFY26 as the 'Crossover quarter,' which should mark the crossing-over from a subdued low-single-digit earnings growth of FY25 towards a more sustainable double-digit earnings growth over the four subsequent quarters," Motilal Oswal said in its latest research note. The brokerage's bottom-up analyst estimates project a sharp acceleration ahead, with MOFSL universe earnings expected to surge 10% YoY in Q1, followed by an impressive 12%/15%/14% growth trajectory in the subsequent three quarters. The Nifty is forecast to post 5% growth in Q1, then accelerate to 6%/13%/16% in the following quarters. Multiple sectors are expected to deliver double-digit profit growth, with real estate leading the charge at 40%, followed by EMS at 46%, cement at 35%, and retail at 23%. "The number of sectors likely to post negative growth is expected to be lower at 2 (Autos and Metals) in 1QFY26 vs. 6 sectors in FY25 – indicating improving dispersion of growth," the brokerage noted. Significantly, for the full year FY26, Motilal Oswal currently doesn't factor any sector to post negative profit growth. The oil & gas sector is expected to be the primary driver, with a massive 42% year-on-year growth fueled by oil marketing companies. Telecom is set for a dramatic turnaround from losses to profit, while other key contributors include technology (+7%), lending NBFCs (+8%), PSU banks (+5%), and healthcare (+11%) – collectively accounting for 89% of the incremental earnings growth. Also Read: Q1 results season: The crossover quarter that could end India's growth drought
