India's Bharat Electronics, HAL, Mazagon Dock rise; JP Morgan starts coverage

Mazagon Dock Shipbuilders

26/11/2024 05:39

** Shares of Hindustan Aeronautics  HIAE.NS  rise 2.1%,
Bharat Electronics  BAJE.NS  gain 2.3% and Mazagon Dock
 MAZG.NS  up 4%
    ** Uptick after J.P. Morgan initiates BAJE and HIAE with
"overweight", citing likely structural growth in the sector due
to rising capex
    ** Says India's defence sector still in the very early
stages of a long runway of growth
    ** Adds recent pull-back in BAJE, HIAE offers attractive
entry point
    ** Names BAJE its preferred pick due to diversified rev and
order inflow and long track record as a listed company
    ** "HIAE's growth potential helped by the fact that it is
the main domestic maker of aircraft, engines and helicopters for
Indian defence"
    ** Also starts MAZG with "neutral"
    ** Says, "While MAZG also faces structural growth
opportunities, its core profit margin will normalize and it
faces higher competition from other government-owned and private
shipyards"

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))