Improved execution likely to drive growth gains for Bharat Dynamics

Bharat Dynamics sees strong revenue visibility with easing supply chain hurdles and robust orders, though near-term stock upside may be capped due to rich valuations

Defence major Bharat Dynamics (BDL), a public sector undertaking (PSU), reported a mixed performance in the fourth quarter of financial year 2024-25 (Q4FY25). While revenues doubled over the year-ago quarter, profitability was sub-par. The company’s order inflows and backlog are healthy, which offers revenue visibility.

 

However, brokerages believe the pace of execution is crucial for the company, which makes guided missile and allied equipment for the Indian armed forces. Analysts are positive on the medium- to long-term prospects of the stock, which is up 93 per cent in just three months. However, the near-term upside might be limited given that