'Wait for one more quarter': Dharmesh Kant on IndusInd Bank; says this on BEL, HAL & Mazagon Dock

Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, on Tuesday said IndusInd Bank Ltd posted a bad set of numbers in the June 2025 quarter (Q1 FY26). "Quarterly numbers were bad. Business-wise, the bank has not been doing well and it will take some more time until the entire audit and everything is through. Two to three quarters could be lost in consolidating, and in that meantime, it will lose the business to competitors in a big way," the market expert told Business Today.

"For IndusInd Bank, further damage to the stock price may not be there. However, 5–7 per cent cannot be ruled out but beyond that, I don't see it going down because the people who are now sitting in it as an investor are sitting in it for a long haul -- for 3 to 5 years kind of a time horizon. So, that way valuation looks pretty attractive but I would suggest that you wait for one more quarter," Kant added.

"Let Q2 also pass and then take a reasoned call on whether to go for investment or wait, because there are plenty of other opportunities available in the same basket where you can get a much higher and better return with clear visibility as to the next trajectory," he further stated.

Sharing his views on the defence pack, Kant highlighted that the basic mistake investors make is looking at it on a quarterly basis. "For instance, Mazagon Dock Shipbuilders Ltd is a company which usually takes a year to build a ship -- similar to the case with aircraft and others. But there are a few companies which are into the EMS space in the defence basket where the turnaround is far faster. If you look at the topline of 13–14 listed defence companies for the last year, the visibility of the book-to-bill ratio is almost four to five times," he said.

"Keeping that in mind and seeing those kinds of visibility, it's better to look at it on a yearly basis rather than on a quarterly basis. My own sense is you should not even be looking at a yearly basis. At least give it a two-year kind of window for these large orders to be executed. From that point of view, I think all these corrections which are happening in quality names in the defence space, be it BEL (Bharat Electronics Ltd), HAL (Hindustan Aeronautics Ltd) or Mazagon Dock, are a good opportunity to accumulate if you have missed the bus earlier for a long-term trajectory."

"But be mindful of the fact that these investments are not for a year or so. If returns come by, your good luck. Otherwise, if you are willing to wait for 3 to 5 years, they all are multibaggers from here," Kant underscored.