Bharat Dynamics Limited (BDL) is a government-owned public-sector corporation in India. The company is engaged in the manufacturing of guided missiles and allied defense equipment.

With a market capitalization of Rs 20,718 crores, Bharat Dynamics limited shares gained 4 percent on Thursday’s trading session and closed at Rs 1,130.40 apiece, up 2.27 percent.

This significant increase in share is associated with an increase in order inflows from FY25 and adequate opportunities from multiple industries.

Last year, the stock increased by 43.40 percent from Rs 786.60 to current levels, and it has increased by 25 percent in the previous three months from Rs 903.30.

As per Standalone statements, Operating revenue climbed by 73 percent from Rs 461 crores in Q3 to Rs 798 crores in Q4. Similarly, net profit earnings increased by 83 percent from Rs 83 crore to Rs 152 crore. 

Having a positive outlook for the company, ICICI Securities, gave a revised tag to the company with a target price of Rs 1,325 indicating an upside of 17 percent as compared to the current price levels. 

The rationale behind the revised target is

• The Company’s order book as of May 2023 stands at Rs 20,410 crore, indicating a robust bill-to-book ratio of 8.2 times. 
• The Total amount of new orders received during April and May 2023 was Rs 520 crore. Analysts predict that sales will probably increase from FY26 and reach levels twice as high as FY24 in FY27.
• The company might receive new orders in collaboration with DRDO for the contract to procure a domestically developed smart anti-airfield weapon. 

As per FY23, shareholding pattern, promoters own 74.93 percent of the firm, domestic Institutional Investors own 14.1 percent, and foreign institutional investors own 2.83 percent. 

Written by Omkar C

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