Defence stocks likely to benefit after announcement of “ReArm Europe” plan of $850 Billion

Defence stocks likely to benefit after announcement of “ReArm Europe” plan of $850 Billion

by | Mar 15, 2025 | Case Study

Defence stocks, which were highly favored in 2024, are making a strong comeback after a sharp decline. The sector had a strong rally last year due to rising global tensions and increased exports, but faced a selloff due to high valuations, budget issues, and profit-taking. Just as investors began doubting the long-term potential, Europe’s $850 billion defence plan has turned things around, creating new opportunities for growth in the market.

Europe’s $850 billion defense plan

The EU’s decision comes after the US stopped providing military aid to Ukraine, suggesting a change in global defence priorities. To strengthen its military, the EU has asked member countries to increase their defence spending by 1.5 percent of GDP, leading to a total of EUR 650 billion ($683 billion) in defense spending over the next four years.

The EU has also introduced a joint borrowing plan of EUR 150 billion ($157 billion) to fund essential defense needs like air and missile defense, artillery, munitions, and drones. This means the total “ReArm Europe” plan could mobilize around EUR 800 billion ($850 billion).

How will this plan benefit Indian Defence stocks?

The EU’s defence spending is beneficial for domestic companies like Bharat Dynamics, Solar Industries, and Bharat Electronics. These companies have already supplied equipment and components to countries such as Armenia, and are expected to benefit further from the increased defence budget, and along with it they can benefit as follows:

  • Increased Demand for Defense Products: As the EU boosts its defense spending, there could be more demand for advanced defence technologies, equipment, and systems, including those produced by Indian defence companies.
  • Export Opportunities: As global defense spending increases, Indian defence companies may get more opportunities to export their products, particularly to European nations or other countries investing in defense.
  • Partnerships and Collaborations: The EU’s rearmament plan could lead to collaborations or joint ventures between Indian defense firms and European companies. This would enhance technological know-how and expand the market for Indian defence products.
  • Government Policies: India’s focus on self-reliance in defence manufacturing (Atmanirbhar Bharat) could align with international defence spending trends, potentially opening up government tenders and global defence contracts for Indian companies.

India’s Defence Exports

India’s defence exports have reached a record high of Rs 21,000 crore in FY24, a 33 percent increase from the previous year, thanks to the government’s push for local manufacturing through the ‘Make In India’ initiative. The government aims to raise defense exports to Rs 50,000 crore by 2029.

Elara securities mentioned that currently, the top three countries importing defense products from India are the US, France, and Armenia. Indian companies have supplied various weapons and equipment, including the 155mm artillery, Akash air defence missile, Pinaka multi-launch rocket system, the BrahMos missile, artillery guns, Dornier-228 aircraft, radars, armored vehicles, fuselage and wings for aircraft & helicopters, bulletproof vests, night vision equipment and electronics.

The stocks to keep on your radar

Zen technologies Ltd

The stock is currently priced around Rs. 1,197 in Tuesday’s trade. It has given almost 20  percent return this March, and from its 52-week high, the stock is now trading at a 52 percent discount.

Bharat Dynamics Ltd

The stock is currently priced around Rs. 1,120 in Tuesday’s trade. It has given a 16 percent return this March, and from its 52-week high, the stock is now trading at a 37 percent discount.

Data Patterns (India) 

The stock is currently priced around Rs. 1,574 in Tuesday’s trade. It has given a 13 percent return this March, and from its 52-week high, the stock is now trading at a 55 percent discount.

Bharat Electronics

The stock is currently priced around Rs. 275 in Tuesday’s trade. It has given a 12 percent return this March, and from its 52-week high, the stock is now trading at a 19 percent discount.

HAL Ltd

The stock is currently priced around Rs. 3,429 in Tuesday’s trade. It has given a 12 percent return this March, and from its 52-week high, the stock is now trading at a 39 percent discount.

Paras Defence Ltd

Paras Defence Ltd
The stock is currently priced around Rs. 897 in Tuesday’s trade. It has given a 10 percent return this March, and from its 52-week high, the stock is now trading at a 39 percent discount.

And other stocks like Solar Industries India Ltd, MTAR Technologies Ltd, DCX Systems Ltd, Cochin Shipyard Ltd, GRSE Ltd are also set to benefit.

Financially strong stocks trading below their 3 years average PE to keep on your radar

Financially strong stocks trading below their 3 years average PE to keep on your radar

by | Mar 15, 2025 | Featured

A stock trading at a lower PE ratio than its 3-year average may indicate undervaluation compared to its historical levels, suggesting potential for future price growth if fundamentals remain strong. However, it’s essential to assess earnings growth and market conditions to avoid overlooking potential risks.

Listed below are 4 stocks with P/E below their three-year average.

Nestle India Ltd

With a market capitalization of Rs 2,10,904.56 crore, the shares of Nestle India Limited were trading at Rs 2187.45 apiece, marking a slight decrease from the previous closing price. The company is trading at a P/E of 67.28 as compared to a three-year P/E of 78.8.

Nestlé India Limited is one of the biggest FMCG companies in India offering beverages, prepared dishes, milk products, and confectionery. Its portfolio includes instant coffee, noodles, dairy items, chocolates and sauces. Popular brands are Nescafe, Maggi, Milkybar, Kit Kat and Milkmaid.

IRCTC

With a market capitalization of Rs 55,476.00 crore, the shares were trading at Rs 693.55 apiece, marking a slight decrease from the previous closing price. The company is trading at a P/E of 44.9 as compared to a three-year P/E of 62.1.

IRCTC is an Indian monopoly stock that offers online railway ticketing, catering services, and packaged drinking water at railway stations across India. The company runs Rail Neer plants, mobile catering, and food outlets at stations. It also provides rail tour packages with travel, lodging, sightseeing, and insurance.

Motherson Sumi Wiring India Ltd

With a market capitalization of Rs 22,428.28 crore, the shares were trading at Rs 50.73 apiece, marking a slight decrease from the previous closing price. The company is trading at a P/E of 35.5 as compared to a three-year P/E of 51.9.

Motherson Sumi Wiring India Ltd. provides wiring harness solutions for OEMs in India. It offers end-to-end services from design and validation to manufacturing and assembly. The company produces electrical distribution systems for power and data transfer in vehicles.

TCS

With a market capitalization of Rs 12,67,596.96 crore, the shares were trading at Rs 3,503 apiece, marking a slight decrease from the previous closing price. The company is trading at a P/E of 26 as compared to a three-year P/E of 30.4.

Tata Consultancy Services (TCS), the flagship company of the Tata Group, is a leading IT services, consulting, and business solutions provider. For over 50 years, TCS has collaborated with some of the world’s largest businesses. The company offers an AI-powered and consulting-driven portfolio of technology, business, and engineering services and solutions.

 

Financially strong stocks trading below their 3 years average PE to keep on your radar

Fundamentally strong stocks trading at 52 week low; Are you holding any?

by | Mar 15, 2025 | Featured

4 Fundamentally strong stocks trading at 52 week low; Are you holding any?

 

Indian stock markets are witnessing a sharp decline, with even fundamentally strong stocks hitting 52-week lows due to multiple factors. Rising global uncertainties, including U.S. trade tariffs and recession fears, have led to significant Foreign Institutional Investor (FII) outflows of $16 billion.

High valuations in mid-small-cap stocks have triggered corrections, while slowing GDP growth by 6.4 percent has weakened investor sentiment. Additionally, declining domestic fund inflows, particularly in mutual funds, and sector-specific pressures have further fueled the downturn.

IDFC First Bank

Formed through the 2018 merger of IDFC Bank and Capital First, IDFC FIRST Bank continues to expand in retail, MSME, and corporate banking. In Q3 FY25, the customer deposits rose 28.8 percent YoY to Rs 2.27 lakh crore, while loans grew 22 percent YoY to Rs 2.31 lakh crore. With a 47.7 percent CASA ratio and 16.11 percent capital adequacy ratio, 971 branches, and strong digital banking, the bank remains financially stable.

In Q3FY25, revenue reached Rs  9,343 crore, reflecting an 18.5 percent YoY growth from Rs 7,880 crore in Q3FY24 and a 4 percent QoQ increase from Rs 8,957 crore in Q2FY25. Profit declined to Rs 340 crore, marking a 53.5 percent YoY decline from Rs 732 crore in Q3 FY24 and a 60 percent QoQ increase from Rs 212 crore in Q2 FY25.

The stock is trading at Rs. 53.30, down 2.4 percent for the day but down 31 percent over the past year. The stock hit a 52-week low of Rs 53.30.

Delhivery

Since its inception in 2011, India’s leading fully integrated logistics provider has fulfilled over 2 billion orders, covering 18,700+ pin codes across all states. With 24 automated sort centers, 94 gateways, and 2,880 direct delivery centers, its 57,000+ workforce ensures seamless 24/7, year-round operations, powered by cutting-edge technology and world-class infrastructure.

In Q3FY25, revenue reached Rs. 2,378 crore, reflecting an 8 percent YoY growth from Rs. 2,194 crore in Q3FY24 and an 8.5 percent QoQ increase from Rs. 2,190 crore in Q2 FY25. Profit rose to Rs. 25 crore, marking 108 percent YoY growth from Rs. 12 crore in Q3 FY24 and a 150 percent QoQ increase from Rs. 10 crore in Q2 FY25.

The stock is trading at Rs. 242.11, above 0.8 percent for the day but down 43 percent over the past year. The stock hit an all-time low of Rs 236.53.

Astral Ltd

Founded in 1998, Astral Limited revolutionized India’s piping industry by introducing CPVC piping and expanding into pipes, adhesives, bathware, and paints. With a strong focus on quality and innovation, the company has grown into a household name in building materials. Today, Astral operates 16 manufacturing plants and exports to 31+ countries worldwide.

In Q3FY25, revenue reached Rs 1,397 crore, reflecting a 2 percent YoY growth from Rs 1,370 crore in Q3FY24 and a 2 percent QoQ increase from Rs 1370 crore in Q2FY25. Profit remained flat at Rs 113 crore, from Rs. 113 crore in Q3 FY24 and a 4 percent QoQ increase from Rs. 109 crore in Q2 FY25.

The stock is trading at Rs 1,240.30, down 2 percent for the day but down 38 percent over the past year. The stock hit a 52-week low of Rs 1,232.30.

LTIMindtree

Incorporated in 1996, LTIM, a subsidiary of L&T, is a technology solution provider, offering digital transformation and technology services to its clients spread across the globe. The company’s services include cloud & infrastructure, consulting, customer success, data & analytics, and digital engineering, among others. With a global presence in 40+ countries, 700+ clients, and annual revenue exceeding $4 billion

In Q3 FY25, revenue reached Rs 9,661 crore, reflecting a 7 percent YoY growth from Rs 9,017 crore in Q3 FY24 and a 2.4 percent QoQ increase from Rs 9,433 crore in Q2 FY25. Profit declined to Rs 1,087 crore, marking a 7 percent YoY decline from Rs 1,169  crore in Q3 FY24 and a 13 percent QoQ decrease from Rs 1,252 crore in Q2 FY25.

The stock is trading at Rs. 4,464.95, down 0.5 percent for the day but down 14 percent over the past year. The stock hit a 52-week low of Rs 4,437.45.

JSW Group stock in focus after signing its largest Power Purchase Agreement with West Bengal SEDCL

by | Mar 15, 2025 | Featured

This JSW Group stock, engaged in the business of generation of power, came into focus on Thursday after signing its largest Power Purchase Agreement with West Bengal State Electricity Distribution.

Stock Performance

With a market capitalization of Rs 90,141.16 crore, JSW Energy Ltd climbed over 1 percent to an intraday high of Rs 523.45 per share compared to its previous closing price of Rs 515.50 per share. The shares retraced and were trading at Rs 515.75, a slight increase compared to the previous close.

What Happened

JSW Energy signed its largest Power Purchase Agreement (PPA) with West Bengal State Electricity Distribution Company Limited for a greenfield 1,600 MW (2 x 800 MW) super/ultra super critical thermal power plant. This also happens to be the largest greenfield capacity power project by the company.

Further, the company has also obtained the Commercial Operation Date (CoD) certificate for Unit 2 of the Utkal thermal power plant (2 × 350 MW), marking its readiness for full-scale commercial operations.

Management Commentary

Commenting on this milestone, CEO Mr. Sharad Mahendra, said “This project is poised to significantly boost local employment opportunities and contribute to the region’s economic growth, while ensuring a stable and reliable power supply for years to come….Both the plants benefit from the strategic advantage of being located near coal blocks, which results in lower operational costs. ”

Company Overview

JSW Energy Limited specializes in thermal and renewable energy generation. Its thermal segment produces electricity from coal, lignite, gas, and oil, while its renewables segment generates power through hydro, wind, and solar energy. The company owns multiple power plants, including Karcham, Barmer, Wangtoo, Vijayanagar, Ratnagiri and Baspa. The company has a locked-in generation capacity of 28.3 GW.

Financial Performance

Looking at the latest financial performance, the company has reported a 4 percent decrease in revenue from Rs 2,543 crore to Rs 2,439 crore in Q3 FY25. This was accompanied by a 32 percent decrease in net profits from Rs 232 crore to Rs 157 crore during the same period.

LIC Utsav Plan Guaranteed Plan

by | Feb 26, 2025 | Uncategorized

Key Features of LIC Jeevan Utsav

Explore Features

Guaranteed Life Time Pension

LIC Jeevan Utsav provides Life Time Guaranteed pension plan.

Short Term Payment Option

LIC Jeevan Utsav have option to take short term policy like 5 years to 10 years

Additional Riders Available

This policy have option to take additional riders, like Accidental cover, Term rider

Loan option available

The policy offers a loan facility after two years of full premium payments, catering to liquidity needs.

LIC Jeevan Utsav Plan

Key Features of LIC Jeevan Utsav Plan

  1. Guaranteed additions of Rs.40 per Rs.1,000 Basic Sum Assured annually.
  1. Post premium term, choose between Regular Income (10% of Basic Sum Assured yearly) or Flexi Income (deferred withdrawals with 5.5% interest).
  2.  Death benefit includes the “Sum Assured on Death” with guaranteed additions, ensuring a minimum payout of 105% of total premiums paid.
  1. Maturity benefit isn’t offered as income continues for life.
  1.  Additional liquidity is available through a loan against the policy.
  1. High Sum Assured Rebate is offered for larger coverage.
  1. The plan caters to the demand for a shorter and more flexible premium-paying term.
  1.  Five optional riders can be added for enhanced coverage, including LIC’s Accidental Death and Disability Benefit, Accident Benefit, New Term Assurance, New Critical Illness Benefit, and Premium Waiver Benefit, subject to eligibility and additional premium.
  1. The plan is non-linked and non-participating.

Features of LIC Jeevan Utsav Plan

The features of LIC’s Jeevan Utsav Plan are given below:

  1. Plan Overview: LIC’s Jeevan Utsav is a non-linked, non-participating whole life insurance plan designed for individual savings. It offers lifelong insurance coverage with various premium payment options.
  1. Income Benefits: After a specified period, 10% of the sum assured is paid annually, depending on the chosen premium payment term, with options for either regular income or flexi income.
  1. Guaranteed Additions: The plan guarantees additions throughout the premium-paying term, enhancing the policy’s value over time.
  1. Sum Assured: Large sum assured options are available, allowing policyholders to choose a coverage level that meets their needs.
  1. Liquidity: The plan provides liquidity through loans or surrender options, with loans available after two full years of premium payments.
  1. Optional Riders: Policyholders can opt for up to four out of five available riders for additional coverage. These riders include:

o   Accidental Death and Disability Benefit Rider: Pays a lump sum in case of accidental death and provides monthly installments in case of disability.

o   Accident Benefit Rider: Offers a lump sum payout in case of accidental death, valid during the premium-paying term.

o   New Term Assurance Rider: Provides additional coverage alongside the base death benefit, with coverage lasting up to 35 years or until the policyholder turns 75.

o   New Critical Illness Benefit Rider: Covers 15 specified critical illnesses, with benefits paid upon the first diagnosis, valid for up to 35 years or until age 75.

o   Premium Waiver Benefit Rider: Waives future premium payments in case of the eligible proposer’s death, ensuring continued coverage.

  1. Flexibility: The plan allows for flexibility in premium payment terms, meeting diverse financial needs.
  1.  Loan Facility: The policy offers a loan facility after two years of full premium payments, catering to liquidity needs.

This plan is ideal for those seeking lifelong coverage with savings benefits, and it includes options to enhance coverage through various riders.

Benefits of LIC Jeevan Utsav Plan

The benefits of LIC’s Jeevan Utsav Plan are given below:

 Survival Benefit:

Option I – Regular Income Benefit: Upon survival, 10% of the Basic Sum Assured is paid yearly, starting from the specified policy year (see table below). All premiums must be paid in full.

Option II – Flexi Income Benefit: 10% of the Basic Sum Assured is paid annually, with an option to defer and accumulate the benefit. Interest of 5.5% p.a. (compounding annually) is applied to deferred amounts. The policyholder can withdraw up to 75% of the accumulated amount once per policy year.

Premium Paying Term

Regular/Flexi Income Start Year

5–8 years

11th policy year

9 years

12th policy year

10 years

13th policy year

11 years

14th policy year

12 years

15th policy year

13 years

16th policy year

14 years

17th policy year

15 years

18th policy year

16 years

19th policy year

  1. Maturity Benefit: Not available under this plan.
  1.  Death Benefit:

o   Upon death after the risk commencement, the “Sum Assured on Death” plus accrued Guaranteed Additions are payable. The Death Benefit is at least 105% of total premiums paid.

o   For minors (under 8 years), if death occurs before the risk commencement, the premiums paid are refunded (excluding taxes and additional premiums).

  1. Guaranteed Additions:

o   Rs. 40 per Rs.1,000 Basic Sum Assured accrues yearly during the Premium Paying Term under an active policy.

o   Accruals cease if premiums are unpaid or after the Premium Paying Term ends.

o   Proportionate Guaranteed Additions are paid upon surrender during the Premium Paying Term.

Eligibility Criteria

  1. Premium Paying Term: Ranges from 5 to 16 years.
  1. Minimum & Maximum Age at Entry:

o   For Online Purchase:

Premium Paying Term

Minimum Age (Completed)

Maximum Age (Nearer Birthday)

5 to 16 years

18 years

59 years

5 to 15 years

18 years

60 years

5 to 14 years

18 years

61 years

5 to 13 years

18 years

62 years

5 to 12 years

18 years

63 years

5 to 11 years

18 years

64 years

Maximum Premium Ceasing Age: 75 years (nearer birthday).

  1. Minimum Age at the Beginning of the Policy Year: 18 years when the first Regular Income Benefit/Flexi Income Benefit becomes due.
  1. Basic Sum Assured:

o   Minimum: Rs.5 lakh

o   Maximum: No upper limit, subject to underwriting.

  1. Basic Sum Assured Multiples:

Premium Paying Term

Minimum Age (Completed)

Maximum Age (Nearer Birthday)

5 to 16 years

18 years

59 years

5 to 15 years

18 years

60 years

5 to 14 years

18 years

61 years

5 to 13 years

18 years

62 years

5 to 12 years

18 years

63 years

5 to 11 years

18 years

64 years

  1. Commencement of Risk:

o   For those under 8 years, the risk begins 2 years from the policy start date or on the policy anniversary following the 8th birthday, whichever is earlier.

o   For those aged 8 and above, risk starts immediately upon policy issuance.

  1. Date of Vesting:

o   If the Life Assured is below 18 years at policy start, the policy automatically vests on the Life Assured when they turn 18. Life Assured becomes the absolute owner of the policy at this point.

FAQs on LIC Jeevan Utsav

  • What’s the Jeevan Utsav Plan of LIC?

    The LIC Jeevan Utsav plan offers survival benefits in the form of regular income benefits or flexi income benefits, depending on the choice selected by the surviving policyholder, as well as financial help to the family in the tragic event of the insured person’s death.

  • Does the LIC Jeevan Utsav Plan offer any rider options?

    Yes, the insurance allows for five optional Rider benefits, each requiring an additional premium payment from the insured. Under this plan, a maximum of 4 riders may be selected from the following 5 optional riders (based on eligibility and terms & conditions).

  • Which premium payment methods are offered?

    The premiums can only be paid through salary savings plans or NACH on a yearly, half-yearly, quarterly, or monthly basis.

  • How can the cost of obtaining the policy be paid for?

    Netbanking, e-wallets, Amex cards, debit cards, credit cards, UPI, and NEFT can all be used to make payments.

  • How long will this plan’s grace period be?

    There will be a grace period of thirty days for the payment of quarterly, half-yearly, or annual premiums. 15 days for monthly premium payments.  The policy lapses if the premium is not paid before the grace period expires.

  • How would one revitalise the policy?

    Setting reminders for your insurance plans’ premium payments is a good habit to get competitive policy advantages. However, an expired insurance policy may still be renewed if the terms and circumstances specified in the policy statement are met. Campaigns for the restoration of expired policies are also carried out by LIC of India. When a lapsed policy is revived, benefits are restored.

  • What is Free-look cancellation?

    Within 30 days of receiving the policy document (or the first in either physical or electronic format), the policyholder may return the policy to the corporation with a statement outlining any concerns if they are unhappy with the “Terms and Conditions” of the policy.

  • Can I take out a loan using the Jeevan Utsav Plan?

    Indeed, LIC’s Jeevan Utsav Plan offers a lending facility (terms and conditions apply). Under this plan, a loan facility will become accessible following the payment of at least two complete years’ worth of premiums. The proposer may take out the loan while the life assured is still a minor if it is raised for the minor’s benefit.

Effortless Calculation: The LIC Jeevan Utsav Calculator simplifies the process of determining your premiums and maturity amounts, saving you time and effort.

Informed Decisions: By providing accurate financial projections, this tool empowers you to make well-informed decisions about your insurance investments.

Free and Accessible: Enjoy the convenience of a free, user-friendly online tool that is accessible anytime, anywhere, ensuring you stay on top of your financial planning.

What Our Users Say

“The LIC Jeevan Utsav made it so easy to understand my policy benefits. I feel more confident about my financial future now!” – Priya S.

“I was able to quickly compare different plans and choose the best one for my family. This tool is a lifesaver!” – Rohan M.
“Thanks to the calculator, I know exactly what to expect at maturity. It’s a must-use for anyone with an LIC policy.” – Anjali K.