Disclaimer: Not Investment Advice:-
We are going to discuss some important companies and some important updates related to them. The name of the first company is BL i.e. B Electronics LED. But before discussing there will also be a disclaimer that all the company related news and updates that we will cover are only for educational purposes. So do not consider this as any kind of investment advice. You can also do your own research and analysis.
Bharat Electronics Ltd (BEL): Strong Past, Promising Future?:-
About some important news and updates related to Bharat Electronics. So friends, if we talk about BL, then this company belongs to the defense sector and is a very big company in the defense sector. We can also say this because it belongs to the company whose numbers remain quite consistent. If you look at the data over the years, if you look at the CAGR of the company’s profit growth over the last 10 years, you will see it to be 16%. If you look at the 5 year CAGR, it will be 24%. The 3 year CAGR of the company is 31% and in the last 1 year the company has grown its profit by approximately 34%. And we see the same thing in the company’s revenue growth as well. The company has been showing consistent double digit growth rate to its investors for the last 10 years. Now on this basis the past record of the company looks quite good. But now let’s talk about some updates related to the company which will give us an idea about how the company’s business may perform in the future. About BL or any other company, the numbers of all these companies remain consistent as long as these companies are getting good orders on a regular basis. If orders stop coming, we see the company’s growth rate also slowing down.
Market Trends: Global Defence Spending on the Rise:-
All these companies always get like orders. But there should be a difference between the orders received last year and the orders received this year and that difference should always be of growth. Ok ? Now, let’s talk about these companies or about the defense sector of our entire India. In the coming future, big orders can definitely come from India because after the India-Pakistan war, India can increase its spending in the defense sector but we can also get good orders from abroad. Now, look friends, recently we saw statements from America that if we have to counter the threats posed by many countries, then we will have to increase our investment of some percentage of our GDP in the defense sector and the same pressure was put on NATO members as well and now, friends, we are hearing that NATO members have completely agreed to a massive up-lining in their defense spending, i.e. to increase their expenditure in the defense sector and because of this, our defense companies may benefit. Because if we talk about HL or BL then what do these companies do? Does not do business only in India. It also exports its defence equipment outside India. So this is the way we get to see our defence export numbers. A windfall can be brought into it. That means it can bring good growth. And in this all those companies can get good benefits in business. The companies which pay more attention to export or on export, we get to see the business of that company in which the name of HL comes , the name of BL comes, the name of BF Farz comes. So, you can note down all these big companies here. But all this is just for educational purposes, do not consider this as a recommendation.
Central Depository Services (India) Ltd – CDSL: Recovery on the Horizon?:-
So the name of the next company is CDSL i.e. Central Depository Services India. Now friends, you all know that we did not see good numbers of CDSL at all in the last two quarters. Whether we look at Q3 or Q4, you can compare these numbers on Q1-Q basis as well as on year-on-year basis and on every parameter, whether you want to compare on revenue, profit of the company or operating profit margins of the company. Now considering multiple factors, this company has shown us disappointing results in the last two quarters. Why did the revenue of the company impact first ? Because we did not see good volumes in the market, and if you look at the stock market in January, February and March, we did not see good performance. And before that, if you look at the record of the six months of October, November, December and January, February and March, we saw very disappointing volumes in the performance of the derivatives market in these six months.
Because of new rules of SEBI. In this, they had tightened the trading even more and we also saw a big drop in the volumes and because of this we saw an impact in the revenue of the company but there are charges for the service provided by CDSL and it had also reduced those charges. Due to this, we may see an impact in the margins of the company as well and if the revenue and margins get impacted, then it is obvious that the profit will not go up. Profit will definitely go down and it has been seen going down in the last two quarters. But it might be possible, not guaranteed. It is possible that the results we see in quarter one may be disappointing on a year-on-year basis. But we may see some recovery on Q&Q basis. He was seen growing. 2.2 million demat accounts were opened in the month of May. A total of 19.6 million limit accounts have been opened so far and the data we got to see for the month of May was the first month in which we saw an increase on a monthly basis after December 2024 because from January to April we were continuously seeing decline every month and now we are seeing a jump. So friends, what this means here is that if you assume the month of June, it would be better because June can be today, it is 29th June. The month of June will end tomorrow. After that, in three-four days we will see the data as to how many demat accounts were opened in the month of June. Suppose that data goes a little better in April, May and June, then it means that the company may get better volumes in the Q1 results and if better volumes are received, then we may see better performance in the company’s revenue as well. There will be good performance on year on year basis. Its chances are a little less but some recovery can come on Q and Q basis. There are some chances of this. But yes, it is not a guarantee. So for this reason, you should pay attention to this once if you are an investor in CDSL. But don’t take this as a recommendation.
Waaree Renewable Technologies Ltd: Order Win & Revenue Guidance:-
About the next company whose name is Renewable Technologies LED. Wari Renewables had announced that it had received a big order. Talking about the size of the order, we got to see an order of Rs 1480 crore, which can be said to be quite correct because the execution pace of Vari Renewables is quite good. This time Vare Renewables had given guidance that they are expecting a revenue of more than Rs. 3500 crore in the financial year 2026 because they had surpassed the execution target they had set last year and it is expected that they will easily achieve the target they have set this time. So the company had given a revenue guidance of around Rs. 3500 crore, sorry, it was more than that, the maximum can be seen up to Rs. 4000 and the minimum can be up to Rs. 3500 crore. Now if this is achieved, then it is obvious that on year-on-year basis, we may see very good growth in our renewals, in their revenue and we can expect the same thing in profit as well. But the market does not think so because if the market is impressed by the guidance of a company, then valuations get upgraded somewhere. But it is not like that. Here we have seen valuations being continuously downgraded, in fact its current PE is lower than the median PE of the last 5 years. So this means that the conviction of people in the market regarding the growth of renewable technologies is not as high as we saw earlier.
Now the possible reason for this is that if you look at the record of the first 3 years, 5 years or 10 years, the revenue and profit growth of this company is very impressive. But the growth rate has slowed down in one year. And no one in the market was used to this growth. Due to this you have seen the performance also getting weak. This is what is seen in any large cap company. Revenue growth of 80% and profit growth of 56% are considered very impressive numbers. But you could see the results of this company growing by 200-300% every year. But this time it was not seen like this. So because of this you saw disappointing market performance also. Going forward, if we get good results then the valuation given by the market to this company may also show some changes in the valuations. But yes, all these things depend on the results of the company. Because of this, the next result will be important because it is the first result of the financial year 2026. Because of this you should pay attention to it. But don’t consider this as a recommendation.
Pavna Industries Ltd: Stock Split on the Horizon:-
So the name is Pabna Industries. Now, friends, it has announced that this company has scheduled a board meeting on the 2nd of July. The board meeting in which the company will propose the split. Currently the face value of the company is Rs 10 after split. Maybe we might get to see the face value of two. You may get to see one or five, that is, it can be seen in the ratio of 1:2 also. It can be available at the ratio of 1:5 or even at the ratio of 1:10. We will get to see the rest of the proper outcomes only on July 2. So if you are an investor in this company then note down this date. If you are not an investor, you can ignore it.