Bharat Dynamics shares up 4% from day's low on ₹4,362-cr order win from MoD

Bharat Dynamics shares rose on the BSE after it informed its shareholders that it has won an order from the Ministry of Defence for the supply of armaments to Indian Armed forces

Bharat Dynamics share price took flight on the bourses on Wednesday, rising 4 per cent from the day's low of the BSE, on order win announcement. The stock of the defence company hit an intraday high of ₹1,358.35 per share, rising sharply from the day's low of ₹1,304.45.

 

From the previous close of ₹1,315.15 per share, Bharat Dynamics stock advanced 3.2 per cent on an intraday basis. By comparison, the benchmark BSE Sensex index was down 509 points (0.65 per cent) at 1:35 PM.

 

Meanwhile, in a stock exchange filing, Bharat Dynamics informed its shareholders that it has won an order from the Ministry of Defence for the supply of armaments to Indian Armed forces.

 

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"Bharat Dynamics is in receipt of an order worth Rs 4,362.23 crore for the supply of armaments to Indian Armed forces," it said in a statement. The company, however, refrained from disclosing the type of work order due to the "confidential" nature of the supply in view of "national security".  ALSO READ | Stock Market LIVE Updates: Sensex drops 570 pts to 77,440; Nifty at 23,540

 

Bharat Dynamics Limited (BDL) is a Hyderabad-based Public Sector Undertaking (PSU), engaged in the manufacturing of guided missile systems and allied equipment for the Indian Armed Forces.

 

It is among the few industries in the world having state-of-the-art facilities for manufacture and supply of Guided Missiles, Underwater Weapons, Air- borne products and allied defence equipment for the Indian Armed Forces. The company also offers Product Life Cycle Support and Refurbishment / Life Extension of vintage Missiles.

 

According to its website, Bharat Dynamics has four manufacturing units, out of which three are located in Telangana State (Hyderabad, Bhanur, and Ibrahimpatnam) and one Andhra Pradesh (Visakhapatnam). As a part of its expansion plan, the defence company is setting up one unit at Amravati in Maharashtra to cater to the growing demands of the Armed Forces.

 

In the October-December quarter (Q3FY25), Bharat Dynamics reported a net profit of ₹147 crore, up 9 per cent year-on-year. Operationally, its revenue rose 38 per cent Y-o-Y to ₹832 crore, while its Ebitda improved by 7 per cent to ₹127 crore.

 

It declared an interim dividend of ₹4 per share for FY25.

 

According to analysts, Bharat Dynamics noted an order inflow of ₹3,100 crore in 9MFY25, taking the  total order book to ₹20,700 crore, providing healthy revenue visibility of 8.5x its TTM revenue.  ALSO READ | HAL share price pops 4% on reports of receiving 1st F404-IN20 engine from GE Aerospace

 

"Despite a strong order backlog of around ₹20,600 crore, BDL's execution has remained muted given the supply chain challenges that it faced over the last two year. However, those issues now seem to be gradually getting ironed out. Execution is expected to pick-up & Bharat Dynamics is anticipating a revenue growth of over 30 per cent and a margin of around 16 per cent in FY26 as supply chain issues, which were prevalent on account of geopolitical issues between Israel and Hamas, gets normalised," noted analysts at Antique Stock Broking in their Q3 result review report.

 

Given the strong business outlook and a huge export opportunity, the brokerage remains positive on the company's long-term business prospects and maintained its 'Buy' rating on the stock with a share price target of ₹1,351.