Business
Defence stocks set for mixed Q4; Nuvama bets on BEL, Solar Industries, and a smallcap pick
The brokerage firm has picked Bharat Electronics Limited (BEL), Data Patterns (India) and Solar Industries India as its top bets.
The pace of new large-ticket orders is likely to slow, with growth increasingly anchored in repeat and replenishment contracts. Consequently, while overall visibility remains robust, the momentum in order inflow growth is expected to moderate, the brokerage added.
After subdued traction for defence stocks in March despite the ongoing Iran-Israel war, April has started on a strong note with the Nifty India Defence index rising over 9% this week. Individually, stocks rallied over 20% with 10 scrips in the 18-stock index delivering double-digit returns.
One can expect more action as earnings are announced and based on developments around the Iran-Israel war. While a two-week ceasefire is ongoing, there has been an exchange of fire between Israel and Lebanon. Meanwhile, US Vice President JD Vance has been tasked with ending the war as he leads negotiations beginning today.
Q4FY26 expectations
BEL
BEL is expected to report modest execution in Q4FY26 with revenue growth of 3.6% YoY, while its order backlog strengthened to Rs 74,000 crore, providing “solid” medium-term visibility. Margins are expected to remain structurally strong at 28%, driven by improving operational efficiencies and higher localisation levels.On the order pipeline front, the Rs 30,000 crore QRSAM programme, for which the Indian Army has already rolled out the tender, is likely to materialise in the near term and could act as a key re-rating trigger, alongside the sustenance of 27%+ OPM trajectory.
Solar Industries
Nuvama expects healthy execution momentum, with revenue growth of 28% YoY, though the defence topline is likely to come in at Rs 900 crore, significantly below the Rs 3,000 crore guidance, primarily due to delays in Pinaka execution and geopolitical disruptions impacting defence supply chains.
Margins are expected to remain robust at 27%, supported by a higher contribution from defence and overseas revenues. The defence backlog of ~INR180bn provides earnings visibility over the next two to three years, while anticipated Pinaka ER orders, estimated at Rs 4,000 crore – 6,000 crore, are likely to further strengthen the growth outlook beyond FY27–28E.
Data Patterns
For the quarter, Nuvama anticipates decent order inflows supported by the reported Rs 290 crore Doppler radars order, while management had earlier guided for the conversion of Rs 1,110 crore worth of negotiated orders under finalisation (as indicated in Q3FY26).
“We expect moderate topline growth of 6.6% YoY on a high base, with margins remaining strong at 43%, reflecting a favourable product mix and operating leverage,” the brokerage note said.
HAL
Hindustan Aeronautics Limited is likely to report a decline in execution in Q4FY26 at 4.4% YoY, below Nuvama’s expectations, which factored in only base order execution including engines and ROH, with no Tejas deliveries commencing during the quarter.
“So far, a total of six GE engines have been delivered, with no aircraft deliveries to the Indian Air Force. Given this, the delivery schedule for the committed LCA Tejas programme appears tight, posing a risk to near-term execution ramp-up,” the note said.
While HAL has a decade-long opportunity pipeline of Rs 4.7 lakh crore, execution ramp-up of its large-scale programs sitting in its Rs 2.4 lakh crore backlog is critical, the brokerage said, listing ongoing supply chain challenges, particularly focusing on the timely procurement of critical components.
Bharat Dynamics
With a robust backlog of Rs 22,800 crore as of end-FY25, BDL is well positioned to deliver a revenue CAGR of 35% over FY25–28E. That said, execution remained volatile in Q4, impacted by both global and domestic supply chain constraints. Margins are expected to be around 22%, supported by an anticipated 35% execution growth in Q4FY26, which should aid operating leverage despite underlying variability, Nuvama noted.
Defence stocks returns snapshot
Select defence stocks have delivered multibagger returns over a one-year despite volatile domestic markets that have braved rich valuations, weak earnings, FII outflows, tariffs and now an ongoing war.
MTAR Technologies tops the charts with 224% one-year returns and is followed by Axiscades Technologies, Apollo Micro Systems and Data Patterns with returns of Rs 124%, 113% and 100%, respectively.
Bharat Forge, Dynamatic Technologies, Garden Reach Shipbuilders, Bharat Electronics, Paras Defence and Space Technologies, Solar Industries, and Mishra Dhatu Nigam delivered double-digit returns up to 86% in this period.
Meanwhile, PSU defence counters BEML, Cochin Shipyard, BDL, Mazagon Dock, and HAL have yielded single-digit returns up to 9%.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
Business
Mutual fund NFOs: 24 funds mobilise Rs 3,985 crore in March, Index fund by HDFC MF contribute maximum
Mutual fund NFOs saw strong traction in March, with 24 launches collectively raising ₹3,985 crore, led by HDFC MF’s index fund contributing the largest share.
Business
China’s expanding surveillance state and crackdowns draw global scrutiny
On April 1, 2026, Oliver Stirbock raised questions in the Hesse State Parliament about the use of surveillance systems from Hikvision and Dahua by local authorities. He called for clarity on guidelines addressing human rights risks linked to these technologies, which have already faced restrictions in countries like the United States. WUC welcomed the move, reiterating longstanding concerns that such tools are tied to the mass surveillance of Uyghurs in China.
Meanwhile, April 5 marked 36 years since the Baren Uprising, a pivotal moment of Uyghur resistance against Chinese rule. In 1990, around 200 Uyghurs protested in Akto County against coercive population control policies, including forced abortions.
The protest was met with a brutal military response, reportedly involving thousands of troops and resulting in widespread killings. No independent probe into the incident has ever been conducted. Commemorative demonstrations were held in Munich and Berlin, with activists demanding justice and remembrance for those killed.
At the international level, WUC Executive Committee Chair Rushan Abbas participated in the Global Counterterrorism Forum cybersecurity conference in Guatemala on April 7.
She highlighted how surveillance practices associated with the Chinese Communist Party extend beyond China’s borders, warning of a growing digital authoritarian model. Alongside Abdulhakim Idris, she also engaged students at Galileo University on what they described as technology-enabled repression.
Adding to global unease, China recently implemented a sweeping 18-point framework to secure its industrial and supply chains. Effective March 31, the policy enhances state authority over key sectors, allowing countermeasures against foreign entities deemed threatening to China’s economic stability. Measures may include restrictions, penalties, and export controls.
Business
Peloton: Great Improvements But With An Idea Lacking Evidence (NASDAQ:PTON)
I am a full-time equity analyst and the co-founder of Mina Vista Capital Management, a hedge fund that my business partner, William Hazen, and I started. I look for long-term investment opportunities with a focus on fundamentals. I’ve done extensive research on industries such as energy, technology, and homebuilding, and I’m continuing to expand my knowledge. I find discussions with other analysts, especially when we hold opposing views, very constructive to both of our theses. If you have a different view on any of the companies I cover, send me a message on X and I’ll be happy to discuss.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Business
Twin Disc's Pop Means It's Time For A Downgrade
Twin Disc's Pop Means It's Time For A Downgrade
Business
Americans weigh in on the Iran war, gas prices and their fears

Americans weigh in on the Iran war, gas prices and their fears
Business
Unique Picks: 8 stocks held by a single MF scheme in March; fall up to 35% in CY26
A set of 8 uniquely held stocks—each owned by just one mutual fund scheme—saw sharp declines of up to 35% in CY26, highlighting concentrated portfolio risks.
Business
UltraTech Cement, HPCL among 5 stocks Emkay adds to model portfolio; upside seen at 118%
Emkay has added five stocks including UltraTech Cement and HPCL to its model portfolio, projecting potential upside of up to 118%.
Business
Debt mutual funds record big outflows of nearly Rs 3 lakh crore. Are safer options losing appeal?
In March last year, these funds had recorded an outflow of Rs 2.02 lakh crore. Across the 16 sub-categories, all segments witnessed outflows in March.
Also Read | Mutual fund SIP stoppage ratio jumps to over 100% in March, even as contributions hit record Rs 32,000 crore
Nehal Meshram, Senior Analyst, Morningstar Investment Research India said debt-funds saw a net outflow in March, marking a steep reversal from the relatively healthier flows seen in January and February. The pressure was concentrated in short-term and treasury-oriented categories, which suggests quarter-end institutional and corporate liquidity adjustments were a key driver.
Nehal further mentioned that the sharp reversal in debt fund flows in March was driven largely by heavy redemptions from short-term and liquidity-oriented categories.
Liquid funds saw the highest outflow at Rs 1.34 lakh crore. Overnight funds recorded outflows of Rs 40,227 crore, followed by money market funds at Rs 29,206 crore.
Kartik Jain, MD & CEO, Shriram AMC, said debt categories, which saw inflows in February, witnessed significant outflows in March, particularly in liquid and money market funds, suggesting quarter-end treasury movements and profit booking by institutional investors.
The AMFI data showed that low-duration funds saw an outflow of Rs 25,227 crore. Corporate bond funds and gilt funds saw an outflow of Rs 15,292 crore and Rs 3,078 crore, respectively.
Commenting on the outflows from corporate bond funds and gilt funds, Nehal said corporate bond funds recorded outflows, indicating some pressure even in relatively high-quality accrual-oriented strategies, whereas gilt funds continued to see outflows, suggesting investor appetite for duration-led strategies remained limited.
Gilt funds have been witnessing continuous outflows for the last eight funds. Long-duration funds and dynamic bond funds have been witnessing outflows for six straight months each. Credit risk funds are observing outflows for the last 36 months.
The assets under management (AUM) of debt funds declined by 15% in March to Rs 16.51 lakh crore from Rs 19.43 lakh crore in February.
Also Read | Gold ETF inflows drop 57% to Rs 2,265 crore; silver ETFs see second straight month of outflows
From a broader quarterly perspective, the March pullback was large enough to drag overall debt fund flows into negative territory for Q1 2026, with short-term categories accounting for most of the weakness. Overall, the March data appears to reflect seasonal quarter-end liquidity adjustments more than any broad-based deterioration in sentiment toward fixed income, Nehal said.
Ankur Punj, MD & Business Head, Equirus Wealth said March typically witnesses a surge in outflows due to higher redemptions, particularly from debt mutual funds, as companies redeem money from liquid funds to meet year-end commitments.
However, this is just a temporary blip and industry is likely to witness a surge in inflows in the coming months backed by India’s strong macroeconomic fundamentals and valuations of domestic equities looking favourable, Punj further said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and twitter handle
Business
Western Midstream: My Favorite High-Yield MLP Pick
Western Midstream: My Favorite High-Yield MLP Pick
Business
Sunil Singhania-backed Abakkus Flexi Cap Fund raise stake in HDFC Bank, RIL and 28 other stocks in March
The monthly data showed that the flexi cap fund added nearly 2 lakh shares of HDFC Bank in its portfolio taking the total share count to 20 lakh in March compared to 18 lakh in February. It also added 75,000 shares of Reliance Industries and had 10 lakh shares in its portfolio of RIL in March.
Also Read | Gold ETF inflows drop 57% to Rs 2,265 crore; silver ETFs see second straight month of outflows
Apart from these two stocks, the fund raised its stake in 28 other stocks in March. Among these 28 stocks, the fund added a maximum number of shares of Tata Steel as it added 9 lakh shares in its portfolio. This was followed by net addition of 5 lakh shares of Bank of Baroda.
There were 45 lakh shares of Urban Company in the portfolio in March as around 4 lakh shares were added to the portfolio from the previous share count of 41 lakh in February. The fund added 2.50 lakh shares each of The Federal Bank and Emmvee Photovoltaic Power .
Some other stocks where the stake was increased included Aether Industries, Bajaj Auto, ICICI Bank, ICICI Prudential AMC, Inox India, Oracle Financial Services Software, State Bank of India, and Vedanta.
Mahindra & Mahindra was added to the portfolio as a new entrant in March and the flexi cap fund had 2.35 lakh shares of M&M.
A complete exit was made from Bharat Petroleum Corporation in March by selling 16.01 lakh shares from the portfolio in March.
The exposure in 13 stocks remained unchanged in March which includes stocks such as Ajanta Pharma, DLF, Deepak Fertilizers and Petrochemicals Corporation, Edelweiss Financial Services, Fractal Analytics, L&T, NTPC, and Supriya Lifesciences.
As of March 31, 2026 the flexi cap fund had 44 stocks in its portfolio, the same as the one in February. The portfolio of this flexi cap fund is spread across 22 sectors.
The primary investment objective of the scheme is to generate capital appreciation & provide long-term growth opportunities through equity and equity related instruments by investing in a diversified portfolio of large cap, mid cap and small cap securities and the secondary objective is to generate consistent returns by investing in debt and money market securities.
Launched on December 29,2025 the fund had an AUM of Rs 3,089 crore as of March 31, 2026. It is benchmarked against the BSE 500 Index (TRI) and is managed by Sanjay Doshi (Equity) and Abhishek K S (Fixed Income).
Also Read | Mutual fund SIP stoppage ratio jumps to over 100% in March, even as contributions hit record Rs 32,000 crore
The fund holds 43.29% in large caps, 18.47% in mid caps, 29.93% in small caps and 8.31% in cash and cash equivalents.
Sanjay Doshi, Head of Investments and Research, in the monthly release by the fund house said Abakkus Flexi Cap Fund aims to benefit from growth opportunities across market capitalizations and sectors while maintaining mindful valuation discipline. The portfolio has a balance of leaders and emerging winners and hence maintains a high active share through conviction driven positioning.
As of March 2026, the portfolio reflects our positive outlook across breadth, with a higher allocation to small cap space where medium term risk reward appears favourable, despite near-term market volatility. We remain positive on Industrials, Financial services, Consumer discretionary and Healthcare, Doshi further said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and twitter handle
-
Business5 days agoThree Gulf funds agree to back Paramount’s $81 billion takeover of Warner, WSJ reports
-
Sports7 days agoIndia men’s 4x400m and mixed 4x100m relay teams register big progress | Other Sports News
-
Politics17 hours agoUS brings back mandatory military draft registration
-
Fashion17 hours agoWeekend Open Thread: Veronica Beard
-
Tech4 days agoHow Long Can You Drive With Expired Registration? What Florida Law Says
-
Business6 days agoNo Jackpot Winner, Prize to Climb to $231 Million
-
Fashion5 days agoMassimo Dutti Offers Inspiration for Your Summer Mood Board
-
Sports18 hours agoMan United discover Nico Schlotterbeck transfer fee as defender reaches Dortmund agreement
-
Fashion4 days agoLet’s Discuss: DEI in 2026
-
Crypto World3 days agoBitcoin recovers as US and Iran Agree a Ceasefire Deal
-
Crypto World2 days agoCanary Capital Files SEC Registration for PEPE ETF
-
Business14 hours agoTesla Model Y Tops China Auto Sales in March 2026 With 39,827 Registrations, Beating Cheaper EVs and Gas Cars
-
Business6 days agoAkebia Therapeutics, Inc. (AKBA) Discusses Pipeline Progress and Strategic Focus on Kidney Disease Treatments at R&D Day – Slideshow
-
Business23 hours agoOpenAI Halts Stargate UK Data Centre Project Over Energy Costs and Copyright Row
-
Tech5 days agoGamer Restores the Original PlayStation Portal From Two Decades Ago
-
Tech5 days agoHaier is betting big that your next TV purchase will be one of these
-
Tech5 days agoThe Xiaomi 17 Ultra has some impressive add-ons that make snapping photos really fun
-
Tech5 days agoSamsung just gave up on its own Messages app
-
Tech5 days agoSave $130 on the Samsung Galaxy Watch 8 Classic: rotating bezel, sleep coaching, and running coach for $369
-
Tech5 days agoItalian court says Netflix must refund customers up to $576 over price hikes

You must be logged in to post a comment Login