Bharat Dynamics
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Bharat Dynamics Limited (BDL) is navigating a complex landscape characterized by a robust order book of INR 26,176 Crore, which provides a solid foundation for future revenue growth despite anticipated declines in FY26. Management has indicated that while revenue and profitability are expected to dip this fiscal year due to operational challenges and increased inventory levels, the company is strategically investing in R&D and expanding production capabilities to support long-term growth. The expected recovery in FY27 and FY28, driven by improved execution of key programs like Akash and Astra, aligns with Vista's forecast of a gradual revenue rebound and margin improvement. However, the reliance on imported components may pressure margins in the near term. The defense sector's expansion, fueled by geopolitical tensions and increased government spending, further supports BDL's outlook. Over the next 12-24 months, key opportunities include successful execution of the order book and export growth, while watchpoints include potential operational inefficiencies and execution delays that could hinder profitability
Why We Like This Stock
- Strong order book visibility of INR 26,176 Crore supports future revenue growth
- Strategic investments in R&D and production capacity are aimed at enhancing long-term competitiveness
- Expected recovery in earnings driven by improved execution of key defense programs in FY27 and FY28
Things To Watch Out For
- Projected declines in revenue and profitability for FY26 due to operational challenges
- Increased inventory levels may indicate slower sales conversion and potential production inefficiencies
- Margin pressures anticipated from a higher proportion of imported components in the near term
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,369 | 3,345 | 2,442 | 4,236 | 7,217 |
| Profit Before Tax (Cr.) | 828 | 749 | 568 | 1,522 | 2,180 |
| PBT Margin | 35.0% | 22.4% | 2326.0% | 35.9% | 30.2% |
| Net Profit (Cr.) | 600 | 498 | 420 | 1,127 | 1,613 |
| Earnings Per Share | 16.4 | 13.6 | 11.5 | 30.7 | 44.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Choice Equity | ▲ Buy | 1,500 | 29-May-2026 |
| Elara Capital | ► Accumulate | 1,315 | 03-Jun-2026 |
| Goldman Sachs | ▼ Sell | 1,150 | 17-Aug-2026 |
| ICICI Securities | ► Hold | 1,360 | 29-May-2026 |
| Moneycontrol | ► Equalweight | nan | 22-Jun-2026 |
| Motilal Oswal | ► Neutral | 1,150 | 29-May-2026 |
Company Overview
Show Company Profile
Bharat Dynamics Limited manufactures and sells guided missiles, underwater weapons, air-borne products, and allied defense equipment in India. It offers light and heavy-weight torpedoes, unified launcher, fagot launcher adapted to Milan equipment, Konkurs launcher test equipment, Akash and Astra weapon systems, Konkurs missile test equipment, medium-range surface-to-air missile, quick reaction surface-to-air missile, and multi-influential ground mines. The company also sells vertically launched-short range surface-to-air missile, anti-submarine warfare suite, counter measures dispensing system, smart anti-airfield weapon, anti-torpedo decoy launching system, Helina, Amogha III, man portable anti-tank guided missile (ATGM), NAG ATGM, invar (3 UBK 20) anti-tank guided missile, Konkurs-M ATGM, and Milan2T ATGM, as well as Dishani, an air-deployed ASW sensor system. Bharat Dynamics Limited was incorporated in 1970 and is headquartered in Hyderabad, India.