Defence stock surges 26% in 1 wk, zooms 100% from March low; hits new high

Shares of Bharat Dynamics hit a new high of ₹1,821.95, gaining 4% on the BSE in Wednesday's intra-day trade, surpassing its previous high of ₹1,794.70 touched on July 5, 2024.

Bharat Dynamics Limited Share price: Shares of Bharat Dynamics Limited (BDL) hit a new high of ₹1,821.95; gaining 4 per cent on the BSE in Wednesday’s intra-day trade on a strong order book position. The stock surpassed its previous high of ₹1,794.70 touched on July 5, 2024.

 

The stock price of the state-owned aerospace & defence company is quoting higher for the fifth straight trading day. In the past one week, BDL has rallied 27 per cent, as compared to the 1 per cent rise in the BSE Sensex. BDL’s market price doubled from its March 2025 low of ₹908.90 on the BSE.  Read Stock Market LIVE Updates Today

 

Strong order book position

 

In the fiscal year 2024-25 (FY25), BDL secured orders worth ₹6,668 crore and the order book position (provisional & unaudited) of the company as on April 1, 2025 stood at around ₹22,700 crore.

 

BDL recorded its highest ever export turnover of over ₹1,200 crore during FY25 as against the previous year’s export turnover of ₹161 crore, registering a record growth of over 640 per cent.

 

Bharat Dynamics' Exports

 

BDL primarily caters to the requirements of the Indian armed forces. With encouragement from the Government of India, BDL is actively exploring export markets. Further, with the Cabinet Committee on Security (CCS) providing clearance to export the Akash Weapon System to nine countries, BDL is gearing up to take up the export orders.

 

BDL has placed significant emphasis on the export of Weapon Systems. To explore the export potential of its products, identify potential markets, and pursue export opportunities, an export cell has been established within the Business Development Division of BDL.   ALSO READ | HBL Engineering shares surge 8% on RDSO nod for Kavach System version 4.0

 

The opening up of the export market and ’ease of doing business’ have facilitated BDL to execute export orders successfully in recent times and receive more enquiries from other countries.

 

Several leads have been received from various friendly foreign countries for the export of products such as the Akash Weapon System, ATGMs, Air to Air Missile (Astra), Smart Anti-Airfield Weapon, Helina (Air-to-Surface Weapons), Light Weight Torpedo, Heavy Weight Torpedo (Underwater weapons), Counter Measures Dispensing System, and Anti-Submarine Warfare Suite (Counter Measure Systems), etc, BDL said in its FY24 annual report.

 

Elara Capital view on defence sector

 

India's defense exports have increased significantly in recent years, reaching a record ₹21,000 crore in FY24 (Source: Defense Ministry). This is a 33 per cent increase from the previous fiscal year. India has set a defense exports target of ₹30,000 crore by FY26. In this context, the new $850 billion plan by the European Union (EU) provides a major opportunity for domestic public and private defence companies, especially for exports of subsystems and components to EU original equipment manufacturers (OEM). Potential beneficiaries from the public sector undertakings could be Bharat Electronics, Hindustan Aeronautics and Bharat Dynamics.  ALSO READ | Why did Raymond shares drop 66% from ₹1,500 apiece to ₹500 in a day?

 

ICICI Securities view on Bharat Dynamics

 

In our view, manufacturing activities are picking up at BDL, as the company steps up execution of its burgeoning order book. Ebitda margin (adj. for provisions) works out to a healthy 32.7 per cent, mainly as execution is around in-house platforms. Besides, for the first time since the Russia-Ukraine conflict, there is no reference to supply chain bottlenecks in the notes to accounts – possibly implying that the residual MRSAM (Medium Range Surface to Air Missile) order (estimated at ₹ 700–800 crore) may be executed by FY26E, further aiding revenue growth. The brokerage firm, in the company’s Q3 earnings update, said they also expect the execution of Akash third and fourth regiment orders to start by Q1FY26; thereby, boosting revenue.

 

About BDL

 

Bharat Dynamics (BDL), a Government of India Enterprise under the Ministry of Defence was established at Hyderabad in the year 1970. It is engaged in the manufacturing of Missiles and allied Defence Equipments. The Company provides majority of its goods and services to the Indian Armed forces and Government of India. The Company has three manufacturing units, located at Kanchanbagh (Hyderabad) in Telangana, Bhanur (Sangareddy District), also in Telangana, and Visakhapatnam in Andhra Pradesh. BDL is in the process of setting up additional facilities at Amaravati (Maharashtra), lbrahimpatnam (Telangana) and Jhansi (Uttar Pradesh).