This state-owned defence stock has dropped 20% in two days; check details

BDL share falls: The state-owned defence company Bharat Dynamics Limited (BDL) shares plummeted 10 per cent, triggering the lower circuit as the stock hit an intraday low of Rs 1,293.35, on Wednesday.

The decline came after the failure of the Narendra Modi-led BJP to secure a majority on its own in the Lok Sabha 2024 elections. Consequently, the party may need to rely on alliances to form the government.

Bharat Dynamics shares also suffered a 10 per cent drop on Tuesday, June 4.

In contrast, other defence stocks performed positively in today's trading session. Hindustan Aeronautics Limited (HAL) saw a modest increase of 0.64 per cent, Bharat Electronics Limited (BEL) rose 1.49 per cent, and Mazagon Dock surged 4.3 per cent.

Headquartered in Hyderabad, Bharat Dynamics Limited (BDL) is one of the leading defence PSUs in India engaged in the manufacture of surface to air missiles (SAMs), anti-tank guided missiles (ATGMs), underwater weapons launchers, counter
measures dispensing system (CMOS) and test equipment. 

The company is engaged in the business of refurbishment and life extension of stored and deployed missiles. It is the sole manufacturer in India for SAMs torpedoes ATGMs. Currently it is also the sole supplier of SAMs and ATGMs to the Indian Armed Forces. 

Q4FY24 financial performance

Bharat Dynamics’ profit zoomed 89 per cent on a year-on-year (Y-o-Y) basis to Rs 288.8 crore in the March quarter of financial year 2024 (Q4FY24), from net profit of 152.8 crore in the March quarter of financial year 2023 (Q4FY23).

BDL’s revenue from operations soared 7 per cent annually to Rs 854.1 crore in Q4FY24 as opposed to Rs 798.3 crore a year ago.

At the operating front, earnings before interest, tax, depreciation, and amortisation (Ebitda) climbed 72.6 per cent on a Y-o-Y basis to Rs 316.5 crore in Q4FY24, from Rs 183 crore in Q4FY23. 

The Ebitda margin, meanwhile, came in at 37.1 per cent in Q4FY24, from 23 per cent in Q4FY23. 

The board also recommended a final dividend of Rs 0.85 per share for FY24. 

At 2:33 PM, shares continued to be locked in 10 per cent lower circuit. In comparison, BSE Sensex was trading 2.89 per cent higher at 74,165.64 levels.