Dharmesh Kant Recommends Caution on IndusInd Bank, Defence Stocks Ahead of Q2

Dharmesh Kant, Head of Research at Cholamandalam Securities, has advised investors to adopt a cautious approach towards IndusInd Bank and key defence sector stocks such as Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL), and Mazagon Dock Shipbuilders. Speaking to Business Today, Kant recommended waiting another quarter to gain better clarity on earnings trends and long-term valuation.

Kant pointed out that retail investors often make the mistake of assessing companies based on short-term quarterly results. Instead, he suggested that evaluating performance over a longer horizon offers a clearer investment picture. With IndusInd Bank, he advised watching for the second quarter (Q2) results, which are likely to provide stronger insight into the bank’s growth trajectory and operational efficiency.

Turning to the defence sector, Kant acknowledged that stocks like BEL, HAL, and Mazagon Dock have attracted investor attention due to government contracts and rising geopolitical focus on indigenous defence production. However, he warned that earnings in this segment are typically uneven and heavily influenced by policy decisions and budget timing. As a result, investors should avoid reacting to single-quarter results and instead wait for sustained performance visibility.

Kant’s cautious stance reflects broader market sentiments amid ongoing volatility and sectoral rotation. His advice underscores the need for patience and discipline in timing market entries, especially in capital-intensive and government-sensitive sectors.

Overall, Kant’s message was clear: investors should look beyond the immediate term and assess underlying fundamentals before making investment decisions.