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Mint
3 hours ago
- Business
- Mint
Questions raised as HAL outbids Adani Defence, Bharat Dynamics in Isro's SSLV ‘privatisation' attempt
Next Story Business News/ Companies / Questions raised as HAL outbids Adani Defence, Bharat Dynamics in Isro's SSLV 'privatisation' attempt Shouvik Das State-owned Hindustan Aeronautics, Adani Defence Systems's subsidiary, and Bharat Dynamics were the finalists among six shortlisted bidders for Isro's ₹ 511-crore small rocket contract. The contract will see HAL take full ownership of the small satellite launch vehicle (SSLV) that Isro built and first launched in August 2022. (PTI) Gift this article New Delhi: Almost three years since its first demonstrator mission launch, a ₹ 511-crore contract to privatize Indian Space Research Organisation's (Isro) small satellite launch vehicle (SSLV) was awarded toHindustan Aeronautics Ltd by the government's nodal space agency on Friday. New Delhi: Almost three years since its first demonstrator mission launch, a ₹ 511-crore contract to privatize Indian Space Research Organisation's (Isro) small satellite launch vehicle (SSLV) was awarded toHindustan Aeronautics Ltd by the government's nodal space agency on Friday. However, considering that HAL is a public sector undertaking overseen by the defence ministry, analysts, observers and proxy advisory firms are questioning whether the award truly qualifies as 'privatization' of the government-built rocket. The contract will see HAL take full ownership of the rocket that Isro built and first launched in August 2022. Pawan Kumar Goenka, chairman of Indian National Space Promotion and Authorization Centre (In-Space), said the project is 'not just a manufacturing contract—HAL will do end-to-end manufacturing, supply chain procurement, winning orders from clients, (and ) launching and maintaining the rocket in the long run". Isro will handhold HAL through the making and validation of the small rocket for two years. Beyond this period, Goenka said HAL can onboard Isro as an advisor on a commercial contract basis. As of 20 June, the Union government holds a 71% stake in HAL. 'The bid from HAL was carefully selected by In-Space, Isro, and NewSpace India Ltd (NSIL) through two bidding rounds. The first round saw the participation of nine companies, from which six were shortlisted. In the second round, three of the bidders dropped out, leaving HAL, and two consortiums—led by Alpha Design Technologies and Bharat Dynamics—as the finalists," Goenka said. Alpha Design is owned by Adani Defence Systems and Technologies Ltd. Neither HAL, NSIL or In-Space disclosed the cost of making the small rockets. Radhakrishnan Durairaj, chairman and managing director of NSIL, which is Isro's commercial space operations division, said the information 'would allude to SSLV's competitiveness on a global scale" and thus could not be disclosed. Industry stakeholders said the decision may not bode well for Isro's privatisation in the long run. Shriram Subramanian, founder and managing director of proxy advisory firm InGovern Research, said the move is 'strange, seeing that the contract was delivered to HAL without validating the firm's capability of delivering space projects as per timelines". Also read | How ISRO's 100th mission reflects its original startup spirit One hand to the other HAL, in partnership with Larsen and Toubro Ltd, was previously awarded an ₹ 860-crore contract to manufacture five units of Isro's larger rocket variant—the Polar Satellite Launch Vehicle (PSLV)—in September 2022. The initial timeline to deliver the first of the five PSLVs was two years. 'We are on track with the engineering efforts, and results from the PSLV contract will be seen very soon," said Barenya Senapati, director of finance at HAL, fielding questions on the company's space contract execution capability during Friday's announcement. 'Our air force engineering division is separate from our new space business, so the two work very differently and are not interconnected," Senapati said, without disclosing when the first PSLV will be delivered. The SSLV award may compound pressure on HAL at a time when the public sector undertaking has been in the firing line of the Indian Air Force itself in terms of its failure to deliver its contract of indigenous 'Tejas' combat aircrafts. 'In a way, this is a good thing for the other private startups," said Narayan Prasad Nagendra, space industry consultant and chief operating officer of Dutch space supply chain firm, Satsearch. 'HAL's contract is essentially a representation of a government contract shifting funds from one hand to another without specifically achieving anything. If at all, given HAL's current track record in space, this will make way for private startups such as Skyroot Aerospace and Agnikul Cosmos to win more clients and take a market lead," he added. Also read | Space tourism: Can Isro beat Blue Origin? On the flipside, others said the move may have come out of necessity. Chaitanya Giri, space fellow at global think-tank Observer Research Foundation, said that 'since the other two final bids for the SSLV were through consortia, In-Space and Isro were really left with only one choice to execute a clean, simple contract for the SSLV". However, Giri added that 'the move to award the contract to HAL cannot strictly be called privatization—it is better to be referred to as commercialization by bringing a legacy Indian industry name into the nascent field". 'It also shows that the Indian government is not yet fully confident in India's private space firms, which could be another reason behind HAL winning the small rocket contract," Giri added. In-Space's Goenka, however, said HAL winning the contract 'was not a subjective decision". 'HAL was the highest bidder, and also cleared In-Space and Isro's technical evaluation process in terms of its capability under all parameters, thereby emerging with the contract as per the official process," he said. Topics You May Be Interested In Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Mint
2 days ago
- Business
- Mint
Indian stock market: Mid-cap magic drives index 20% higher in just 4 months. Will this breakneck rally extend or end?
Mid-cap stocks outlook: Buoyed by improving investor sentiment and a renewed appetite for risk, mid-cap stocks have taken centre stage on Dalal Street. The Nifty Midcap 100 index has surged nearly 20% over the past four months, driven by strong earnings growth and a shift in market leadership. Q4 FY25 marked a clear turning point, with mid-caps outshining both large and small-caps on the earnings front. The Motilal Oswal Midcap universe reported 19% YoY PAT growth—nearly double that of large-caps and well ahead of small-caps. Amid a volatile start to the year, amid tariff uncertainty, foreign investor outflows, and broader economic concerns, the Nifty Midcap 100 is just 1% higher YTD, yet, within the index, select stocks have soared up to 75% in 2025—led by defence counters. Top gainers include Solar Industries, Bharat Dynamics, Mazagon Dock, and Cochin Shipyard, with support from BSE, SBI Cards, and Aditya Birla Capital, reflecting broad-based participation across sectors. This rally also coincides with the return of foreign institutional investor (FII) inflows, totalling ₹ 11,544 crore, alongside 23 consecutive months of domestic institutional investor (DII) buying. "Overall domestic flows have been strong in June and 2025. In June, around ₹ 50,000 crore of stocks have been bought by DIIs, and the trend has remained the same for 2025 as well. Out of this, 34-40% of the flows have gone into mid-cap stocks," said Vaqarjaved Khan, Sr. Fundamental Analyst, Angel One Ltd, pegging it as one of the key reasons behind the rise in mid-cap stocks. Encouraging Q4 earnings results from several companies, particularly in the mid-cap space, have boosted investor confidence and driven buying interest, opined Avinash Pathak, Analyst at LKP Securities. According to a Motilal Oswal report, the midcap space saw a favourable upgrade cycle this quarter, reversing the downgrade-heavy trend seen in the past three quarters, signalling improved earnings visibility and greater investor confidence. A healthy Indian economy and RBI rate cut are among other factors that Pathak believes lend support to the mid-caps. With many factors aligning for the rally in mid-cap stocks, the key question remains how long this trend will sustain, as valuations are becoming stretched following such a sharp rise. The Nifty Midcap 100 index, at around 29.3x FY26 estimated earnings, is trading at a premium to its 10-year average. This raises concerns about overvaluation in certain pockets, especially if earnings growth doesn't keep pace, said LKP Securities' Pathak. He added that we have already seen instances of profit booking in small and mid-cap stocks after multi-day rallies, suggesting that investors are becoming watchful of valuations. Even today (June 19), the Nifty Mid-cap 100 is down for the third day, underperforming the benchmark, as the Iran-Israel conflict hammers sentiment. "The sustainability will largely depend on continued strong earnings growth and margin stability for mid-cap companies. Any disruption in global demand or resetting of cost bases could impact this," Pathak opined. He advised focusing on fundamentally strong mid-cap companies with good earnings visibility, lower debt, and sectoral tailwinds, which will be crucial rather than a broad-based approach. As per ICICIDirect, Nifty midcap is undergoing a healthy retracement after a 28% rally, which should be used as a buying opportunity based on a few factors. "Since the April low, the midcap index has not corrected >6% while on the weekly chart it has not closed below its previous week's low. In the current scenario, despite ongoing volatility, the midcap index has been maintaining the same rhythm. Further, the ratio chart of Nifty 500/Nifty 100 has been inching upward, which indicates relative outperformance," the brokerage said. Motilal Oswal also believes that midcaps are no longer just a beta play—they are increasingly becoming alpha generators. Their ability to adapt, diversify, and scale across core economic themes like electrification, infrastructure, and financial inclusion reinforces their relevance in long-term portfolios, it added. Angel One's Vaqarjaved Khan recommended being watchful and selective. "Over the next one year, the outperformance can continue if global macro holds stable, corporate earnings delivery happens, and Government spending momentum continues. Avoid stocks that have stretched valuations compared to their historical averages and peers," Khan added. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
3 days ago
- Business
- Mint
Asim Munir US visit: BEL, Bharat Dynamics to HAL—defence stocks maintain uptrend.
Stock Market Today: In light of Asim Munir's US visit, BEL, Bharat Dynamics, to HAL, and various other defence stocks maintained their uptrend on Wednesday during the morning trades. Pakistani Army Chief Asim Munir is meeting US President Donald Trump today at 1:00 PM US local time. General Asim Munir, the Chief of Army Staff of Pakistan, is scheduled to meet with US President Donald Trump for lunch on Wednesday. The meeting with the Pakistani general is planned for lunch on Wednesday, suggest news reports. All the eyes will be on this meeting, and more so after the recent India-Pakistan conflict. The Defence stocks also remained in focus, and the share prices of Bharat Electronics Ltd (BEL), Bharat Dynamics, Hindustan Aeronautics Ltd (HAL), Mazagon Dock Shipbuilders Ltd., and others maintained their positive momentum. The Defence Stocks have remained in focus post the India-Pakistan conflict, and Bharat Electronics, or BEL', share price is up almost 37% year to date, while HAL share price has also given more than 20% returns year to date. Bharat Dynamics, Mazagon Dock, and Garden Reach Shipbuilders & Engineers Ltd., or GRSE, share prices are outliers, having risen up to 91% year to date. Notably, most of the Defence sector stocks, such as BEL, HAL, and others, have given Multibagger returns to investors over a 1-3 year period. The order flow for all defence manufacturers in India has risen, and the India-Pakistan conflict is attributed as one of the key reasons for rising order flows for the defence sector stocks by the Indian defence forces, and analysts also remain positive about export orders for these companies, looking at rising geopolitical conflicts. As per Antique Stock Broking, while defence stocks experienced a price correction during July 2024-Mar 2025, there has been a strong rebound in April, primarily triggered by the geopolitical flare-up on the western border and the government's approval of orders worth ₹ 54000 crore. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
6 days ago
- Business
- Economic Times
Father's Day 2025: How to ensure financial security for your father
Tired of too many ads? Remove Ads Approaching retirement Tired of too many ads? Remove Ads Popular in MF 1. HDFC Defence Fund adds Bharat Forge and Bharat Dynamics in its portfolio in May Tired of too many ads? Remove Ads For young fathers Early planning As Father's Day is celebrated today, it's the perfect occasion to move beyond traditional gifts and give your dad something truly meaningful—financial security. While traditional gifts are great gestures, helping your father plan for or strengthen his retirement can offer peace of mind that lasts far beyond this one reached out to an expert to understand how to build the portfolio allocation and plan financial security for the Read | Explained: What all Gen-Z should know about mutual funds Retirement, after all, is a stage of life that demands smart financial planning . Many from the older generation have long relied on fixed deposits and similar instruments for post-retirement income. But with inflation eating into post-tax returns, such traditional savings avenues may no longer be expert highlights that planning for retirement is crucial because, after a certain age, regular income stops, but expenses continue, often increasing due to inflation and healthcare Guha Thakurta, Executive Director at Anand Rathi Wealth Limited shares four steps to ensure financial security post retirement and the mistakes one should avoid post sharing the steps to ensure financial security, the expert mentions that an investor should reassess his after-retirement financial goals and expenses for example household needs, healthcare, travel or support for family. Secondly, investors should have a plan for accumulated wealth to be invested in income generating and capital preservating keep a separate fund for 6 to 12 months of expenses in a safe option like liquid fund or savings account as this helps to handle unexpected costs without disturbing the main investments. And lastly, one should keep checking their financial plan every year or after any major change in your life as this will help you to stay aligned with your goals and adjust to new investors look for the best or top mutual funds to invest without considering their risk appetite, investment horizon, and goals which often results in loss of capital, underperformance in the portfolio, or unfulfilment of main Read | ITC and BSE among stocks that mutual fund bought and sold in May Thakurta shares the mistakes that one should avoid while planning post 60 which includes planning with today's value of money can be misleading as inflation eats into your savings over time, so always adjust your goals example, if a person wants to retire today with Rs 2 crore it will not be the same amount after 30 years as inflation will have a greater role to play. The target amount changes to Rs 11 crore post adjusted of it is not recommended to put all your money in one place as one should invest in assets with low correlation to beat inflation and can construct the portfolio in a manner which is proper debt to equity mix to beat inflation while keeping risk low. And lastly, medical expenses can rise quickly in old age so having good health insurance and a separate medical fund is a must to avoid financial are many investment options available to make investments but an investor should always choose the correct avenue based on their risk appetite, investment horizon, and fathers looking for stable income and capital safety, the expert shares that there are several reliable investment options such as bank fixed deposits (FDs) remain a popular choice, especially among retirees, as they provide assured returns and flexibility in FD returns may not always beat inflation so another option for senior citizens is the Senior Citizen Saving Scheme (SCSS), a government-backed plan designed specifically for individuals above 60 which offers attractive interest rates, quarterly payouts, and tax benefits under Section 80C in old tax regime but not suitable for an individual opting for New Tax are annuity plans offered by insurance companies for retirement planning and such insurance plans come with a lock in period and usually fail to deliver inflation-beating returns so the investor should not look at insurance as an investment product and should go for the term plan, the expert further adds that investing in pure debt mutual funds for retirement may seem like a safe choice, they don't usually deliver high returns, and hence are less effective for long-term wealth creation and more importantly, after the recent tax changes, debt mutual funds are no longer eligible for indexation benefits. 'Now, gains are taxed as short-term capital gains at your slab rate, regardless of holding period. This reduces their post-tax efficiency, especially for retirees in higher tax brackets,' Thakurta shared with Read | HDFC Defence Fund adds Bharat Forge and Bharat Dynamics in its portfolio in May Investment in equity mutual funds through SIP and SWP The expert believes that investing in equity mutual funds through SIP (Systematic Investment Plan) is a smart way to build wealth for retirement as SIPs allow you to invest small amounts regularly in mutual funds that invest in stocks, which can potentially offer annual returns of 13 to 14% over the long you have built a sizable corpus, you can switch to an SWP (Systematic Withdrawal Plan) to withdraw a fixed amount every month as retirement income and this approach helps provide regular cash flow while the remaining corpus continues to grow, Thakurta said.'Retirement planning is a long term journey and choosing diversified equity mutual funds for retirement planning is ideal, as they help to beat inflation and generate long-term wealth and can be a powerful vehicle to help you retire rich.'This is where mutual funds can play a powerful role. They offer the flexibility and diversity needed to manage money effectively at every stage of younger fathers who are still working and have several years before retirement, equity mutual funds are a smarter long-term choice. They invest in stocks and aim to deliver inflation-beating returns over time, making them suitable for wealth creation through consistent investments like advocates equity mutual funds as it can be a powerful tool for long-term wealth creation as they provide diversification and flexibility, which reduces investor risk by providing them the ability to invest across multiple market caps and investors get the benefit of compounding which amplifies the wealth generation process over a longer period of time and equity mutual funds have historically delivered inflation-beating returns of 11-13% over long periods, making them one of the best tools for building a retirement corpus, he of the most effective ways to accumulate wealth for retirement is through a Systematic Investment Plan (SIP) as SIPs allow investors to contribute a fixed amount at regular intervals, ensuring disciplined investing and reducing market timing risks and over the long run, SIP strategy smooths out market volatility, making SIPs an ideal choice for retirement planning, the expert Example, if one starts SIP of Rs 25,000 with an annual step up of 10% for their father when he is of age 40 years, you would accumulate Rs 5 crore when he reaches at the age of 60 Read | NFO Insight: Baroda BNP Paribas Health and Wellness Fund opens. Is it the right prescription for your portfolio? For fathers who have already retired and rely on their savings for monthly expenses, consider suggesting a Systematic Withdrawal Plan (SWP) as this allows your dad to invest a portion of his retirement savings in a mutual fund and withdraw a fixed amount at regular intervals and it not only ensures steady income but also allows the remaining corpus to stay invested and potentially Thakurta shared a SWP plan for retirement as an SWP allows you to withdraw a fixed amount from your mutual fund investment regularly, making it a useful tool for monthly income after retirement and the remaining money stays invested and keeps expert also advised to start with a safe withdrawal rate, like 5 to 6 percent, to make your savings last longer as it's flexible and helps manage expenses without depleting your corpus too shared that if an investor invested a corpus of Rs 1 crore at age 60 and expected a monthly cash flow of Rs 50,000 per month from his investment account then an investor with an asset allocation of 70:30 in equity and debt can end up with corpus of Rs 3 crore with a 4% starting withdrawal rate and a 5% incremental withdrawal rate while ensuring the ease of liquidity in the portfolio.
Mint
13-06-2025
- Business
- Mint
Israel-Iran war buzz: Defence stocks rally despite weak market sentiments; Ideaforge up 8%
Israel-Iran war buzz: The Indian defence companies saw a significant rally in Friday's trading session despite stock market crash, following a wave of military strikes by Israel on Iran, concerns about a wider conflict have resurfaced, prompting increased investor interest in defense-related companies. Shares of Ideaforge Technology surged by up to 8.1 per cent on the BSE, reaching ₹ 599.60, emerging as the top gainer among Indian defence stocks. Meanwhile, Bharat Dynamics share price rallied 4.6 per cent to ₹ 1930.40 on July 13. Shares of Garden Reach Shipbuilders rose by 6%, while Zen Technologies and Cochin Shipyard are up by 4% to 5%. Other defence stocks like Paras Defence, Hindustan Aeronautics (HAL), Bharat Electronics (BEL) shares were also up between 1-3 per cent. As of 09:30 AM, the Nifty India Defence index was the only sectoral index in the green, rising 0.6 per cent, while the Nifty 50 dropped 1.1 per cent. Earlier today, Israel carried out targeted attacks on Iran's nuclear facilities, resulting in several casualties. In response, Iran has pledged to retaliate, with reports suggesting that it has launched as many as 100 drones toward Israel. In the early hours of Friday, Israel carried out a "preemptive strike" on Iran's capital, Tehran, according to Defence Minister Israel Katz. Loud explosions were reported across the city that morning. 'Moments ago, Israel launched Operation Rising Lion, a targeted military operation to roll back the Iranian threat to Israel's very survival. This operation will continue for as many days as it takes to remove this threat," Israel's Prime Minister Benjamin Netanyahu was quoted as saying in a video message. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
