BEL Vs HAL Vs Mazagon Dock Vs BDL: Zero-Debt PSU Defence Stocks Rally 80-140% YTD; More Bulls In Modi Stocks?

With the Budget 2024 announcement just around the corner, top defence stocks such as Bharat Electronics (BEL), Hindustan Aeronautics (HAL), Mazagon Dock Shipbuilders, and Bharat Dynamics (BDL) have recorded stellar buying with their share prices rising impressively in the range of 80% to 140% year-to-date.

These defence stocks are special as they are debt-free companies with strong order books and pipeline execution, which will drive their growth in the long term.

But not just that the upcoming Budget is expected to be yet another boost for a fresh bull run in these Modi stocks.

Vinnaayak Mehta, Founder, of The Infinity Group said, "Government initiatives in key sectors such as defence and railways are set to bolster investor confidence further. The Indian defence sector, benefiting from reforms including a positive indigenisation list for over 400 defence items and an increased FDI limit from 49% to 74%, offers promising opportunities. Stocks like Hindustan Aeronautics have become focal points for investors eyeing the sector's growth potential."

Here are the key performances of top PSU defence stocks and their corporate actions:

Bharat Electronics (BEL):

Share Prices: BEL stock price touched a new 52-week high of Rs 340.35 apiece on BSE before correcting on July 10th. YTD, the stock has rallied nearly 84% as of now. The stock was merely at Rs 185.05 at the start of January 2024.

Dividends: The leading defence player is set to pay a final dividend of Rs 0.80 per share for FY24 for which the record date will be announced soon. Earlier, the company paid two interim dividends of Rs 0.70 per piece each paid in 2024. Since August 2001, the company has delivered up to 50 dividends.

Bonus Issue: Furthermore, BEL has a strong history of rewarding bonus shares. The latest bonus was 2:1 in September 2022, following a 1:10 bonus issue in September 207 and another 2:1 bonus issue in September 2015.

Stock Split: BEL stock has been split only once and that was in March 2017 in the ratio of 10:1.

Bharat Electronics Limited (BEL) is a Navratna PSU under the Ministry of Defence, Government of India. It manufactures state-of-the-art electronic products and systems for the Army, Navy and the Air Force.

Hindustan Aeronautics (HAL):

Share Prices: Unlike BEL, HAL's share price witnessed a bearish trend on July 10. After touching an intraday high of Rs 5,580, HAL share price dipped by 1.3% to Rs 5,470.55 apiece on BSE, at the time of writing. The stock's 52-week high and low are Rs 5,675 apiece and Rs 1,767.95 apiece respectively. YTD, the stock gained by nearly 93% on BSE.

Dividend: India's largest defence stock, HAL delivered dividends of a whopping 440% amounting to Rs 22 per share. This is compared to the 550% dividend payout in FY23. Since March 2019, the company paid up to 11 dividends.

Stock Split: HAL has carried one of the latest stock splits in the defence sector. In September 2023, the stock split in the ratio of 10:1.

Bonus Issue: Moreover, HAL has not carried any bonus issues yet.

Established on 23 December 1940, HAL is one of the oldest and largest aerospace and defence manufacturers in the world.

Bharat Dynamics (BDL):

Share Prices: BDL stock price also dipped by 2.3% to trade at Rs 1641.55 apiece on BSE currently with a market cap of Rs 59,916.47 crore. The stock's 52-week high and low is Rs 1,794.70 apiece and Rs 450.50 apiece respectively.

Bonus Issue: The company has never carried any bonus issue.

Stock Splits: BDL is the latest defence stock to carry stock split. In May 2024, BDL turned ex-split for its first-ever stock split in the ratio of 1:2.

Dividends: BDL has recommended a final Dividend @ Rs 0.85 per share (face value of Rs.5/-each) for FY24. In April 2024, BDL turned ex-dividend for an interim dividend payout of Rs8.85 apiece for FY24. Since, September 2018, BDL has delivered up to 12 dividends.

Headquartered in Hyderabad, Bharat Dynamics Limited (BDL), was incorporated on 16 July 1970 as a Public Sector Undertaking under the Ministry of Defence, Government of India to be the manufacturing base for guided missile systems and allied equipment for the Indian Armed Forces.

Mazagon Dock Shipbuilders:

Share Prices: Mazagon Dock's share price also plunged by 2.5% to trade at Rs 5371.95 apiece with a market cap of Rs 1,08,346.86 crore. The stock's 52-week high and low is at Rs 5,859.95 and Rs 1,489.80 apiece. Despite the latest drop, Mazagon Dock is among the multibaggers of 2024, with gains of 138.11% on BSE.

Dividend: In FY24, the company distributed dividends of 274.50% worth Rs 27.45 per share. Since February 2021, the company delivered up to 7 dividends.

Stock Split: Mazagon Dock has never split in its history so far.

Bonus Issue: Also, the company has not paid bonus shares yet.

Mazagon Dock was incorporated as a Private Limited Company in 1934. After its takeover by the Government in 1960, Mazagon Dock grew rapidly to become the premier war-shipbuilding yard in India, producing warships for the Navy and offshore structures for the Bombay High.