Bharat Electronics, BEML, NALCO, Dredging Corporation, NTPC share price closes positive on Monday as broader market see buying after a flat opening. US Futures were trading firm as well. NSE Nifty is close to 25,000 mark and we could see higher levels in the coming sessions. Among major gainers on NSE were HDFC Life, SBI Life, Tech Mahindra, ONGC, HCL Technologies, JSW Steel, TCS and Kotak Mahindra Bank. Among public sector stocks, many witnessed buying during the afternoon session.

Bharat Electronics Ltd (BEL): A Defense Stalwart with Expanding Horizons

Operational Momentum: BEL continues to be a standout performer in India’s defense electronics space. As of June 16, 2025, its stock touched a new high of ₹403.85, posting a 2.45% gain for the day. Financially, the company is exceptionally strong—debt-free for five consecutive years and reporting a 23.9% CAGR in profit over the last five years.

FY25 Performance: BEL posted consolidated revenue of ₹23,769 crore and a net profit of ₹5,323 crore for FY25, reflecting a 34% YoY increase in profitability. The operating margin improved to 29%, and return on equity reached an exceptional 29.3%. With a 39.1% dividend payout and a top-two sectoral market cap rank, BEL is a key benchmark for PSU success.

Guidance and Order Book: Management projects 15% revenue growth for FY26 with an EBITDA margin of 27%. Order inflows of ₹27,000 crore are expected, potentially rising to ₹57,000 crore with the anticipated QRSAM deal. R&D spend hit ₹1,236 crore in FY24, underlining future-readiness.

Diversification Strategy: BEL aims to raise its non-defense revenue share from the current 8–10% to 20–25% over the long term, targeting adjacent civilian sectors while maintaining MoD dominance.

Analyst Sentiment: Out of 28 analysts, 24 rate BEL a “Buy”. JPMorgan (May 21, 2025) maintained an “Overweight” rating with a target of ₹445—22% upside from current levels. FundsIndia echoed bullishness, valuing the stock at 36x FY26E EPS.

Risks: BEL’s revenue is heavily dependent on MoD orders—over 80% exposure. Supply chain volatility and input cost pressures also pose operational risks.

BEML Ltd: High Momentum, Lofty Valuation

Q4 Surge: BEML’s Q4 FY25 results catalyzed a 22% rally in three sessions. Net profit rose 11.9% YoY to ₹287.55 crore, and revenue climbed to ₹1,656.36 crore. Full-year profit was ₹292.52 crore, with a slight annual revenue decline to ₹4,045.95 crore.

Order Book & Execution: BEML closed FY25 with ₹15,139 crore in orders. Of this, ₹14,610 crore is expected to be executed in FY26, while ₹4,233 crore will carry forward.

Valuation Check: Trading at ₹4,311.80 (late May 2025), the stock is up nearly 30% in two weeks. However, the P/E ratio of 61.5 places it in the "PE Sell Zone", with historical data showing the stock has spent 75.2% of its time below this level.

Analyst View: Trendlyne shows a “BUY” rating from two analysts but with an average target of ₹3,838—11.23% below current levels, signaling overvaluation concerns.

Durability Score: The firm scores 60 for financial strength. BEML’s exposure to mining, defense, railways, and construction enhances resilience, but new investors may want to wait for valuation moderation.

National Aluminium Company Ltd (NALCO): Record Profits Amidst Aluminium Tailwinds

Q4 Financials: NALCO doubled its net profit to ₹2,067.23 crore in Q4 FY25, driven by higher aluminum prices and operational efficiency. Revenue soared 47.2% to ₹5,267.8 crore, marking its highest-ever top and bottom line in a fiscal year.

FY25 Highlights: Net profit for the full year stood at ₹5,267.94 crore, buoyed by record bauxite production and sales.

Growth Strategy: NALCO is investing in modernization and sustainable practices. It is also expanding its market footprint both domestically and globally.

Analyst Sentiment: One brokerage revised its call to “Hold”, with a reduced target of ₹190 from ₹205. Nonetheless, some forecasts still see 19% upside due to expected increases in demand and policy support.

Tax Heaven Projection: Forecasts range from ₹250–₹300 by end-2025, citing demand surges, tech upgrades, and local sourcing incentives.

Risks: Aluminium’s pricing is notoriously cyclical. Volatility in raw materials and global economic conditions could affect margin stability.

Dredging Corporation of India: Recovery Signs, But Challenges Persist

Q4 Turnaround: Dredging Corp recorded net sales of ₹462.41 crore in Q4 FY25 and posted a PAT of ₹24.06 crore, marking its best quarterly performance in five cycles. The operating margin improved to 16.58%.

FY25 Performance: Revenue increased to ₹1,142.14 crore, up from ₹945.50 crore YoY. Yet, full-year profitability was weak with a PAT of -₹27.46 crore and PBT of -₹26.09 crore.

Valuation Weakness: The company is trading at a negative P/E of -48.60 and EV/EBIT of -260.26. ROE stands at -3.73%, and its 1-year return of -7.31% underperforms the Sensex (+7.57%).

Recent Orders: DCI secured a ₹64-crore contract for annual dredging in Kochi and is exploring new tenders.

Technical View: The trend is mildly bearish with weak RSI and moving averages. No major analyst ratings have surfaced recently, highlighting subdued institutional interest.

Power Grid Corporation of India: Market Leader with Execution Challenges

Project Pipeline: Power Grid added over ₹1 trillion worth of projects in FY25, bagging 24 contracts, including the ₹250 billion Khavda-Nagpur HVDC line. It executed capex of ₹263 billion, exceeding internal guidance.

Outlook & Capex: Work-in-hand stands at ₹1.55 trillion. The firm expects ₹1,080 billion in capex over the next three years, with upside from fresh bids.

Price Action: Shares trade at ₹303.85 (as of May 21), up 1.22% that day. However, the stock is down 6.69% YoY, underperforming the Nifty Energy index.

Analyst Sentiment: ICICI Securities (May 22) maintains a “BUY” rating with a ₹361 target—19% upside. The brokerage sees strong long-term leadership and execution depth.

Risks: Delays in right-of-way access and regulatory red tape remain near-term hurdles.

Coal India Ltd: Stable Giant Facing Price Pressure

Performance Overview: Coal India shares trade at ₹391.05—down 28.06% from their 52-week high, yet up 11.97% from the low. As of February 2025, the company achieved ~75% of its 838 MT production target.

Analyst Ratings: JPMorgan (Feb 25) downgraded the stock to “Neutral” with a reduced target of ₹395, citing falling global coal prices and subdued Indian power demand. Out of 25 analysts, 19 rate it a “Buy”, while INDmoney sets a consensus target of ₹440.83.

Market Concerns: Elevated inventories and competition from captive producers threaten margins.

Strengths: Coal India retains its role as India’s largest coal producer with a strong dividend track record and government backing.