Bharat Dynamics Share Price Target

Bharat Dynamics Share Price Target 2024, 2025, 2030

by

Bharat Dynamics Share Price Target : Defense sector PSU company Bharat Dynamics Limited (Bharat Dynamics) has recently announced its financial results for April-June 2023. In the first quarter (Q1FY24), the company witnessed a 5% increase in net profit, amounting to Rs 41.8 crore.

Comparatively, in the June quarter of the previous year, the defense sector company recorded a profit of Rs 39.8 crore. Despite the positive profit growth, Bharat Dynamics experienced a decline of over 2% following the release of the results. However, the market is currently observing a significant upswing.

Bharat Dynamics disclosed to the stock market that its revenue for the June 2023 quarter decreased by 57.2%, totaling Rs 297.7 crore. This is in contrast to the revenue of Rs 694.8 crore reported in the same period last year.

Furthermore, the company reported an EBITDA loss of Rs 32.8 crore during the quarter, whereas in the previous year, it had registered an EBITDA of 42 crores.

Bharat Dynamics Share Price Target 2024, 2025, 2030

About Bharat Dynamics

Bharat Dynamics Limited (BDL) stands out as a leading Indian manufacturer specializing in ammunitions and missile systems, playing a pivotal role in bolstering the nation’s defense sector. Founded in 1970 in Hyderabad, India, under the Ministry of Defence, Government of India, BDL holds the prestigious status of being classified as a “Defence PSU” (Public Sector Undertaking), indicating its government ownership and oversight. Recognized as a “Mini-Ratna – Category – I” company by the Indian government, BDL underscores its operational excellence and financial prowess.

BDL’s core focus lies in the production of guided missiles, allied weapon systems, and underwater weapons for the Indian Armed Forces. Noteworthy missile systems in their repertoire include the Prithvi and Akash, along with Anti-Tank Guided Missiles (ATGMs) and underwater weapons. Collaborating closely with the Defence Research and Development Organisation (DRDO) and foreign original equipment manufacturers (OEMs), BDL ensures cutting-edge technology development and meets specific defense needs.

BDL’s strategic importance cannot be overstated, as it significantly contributes to India’s self-reliance in defense equipment production, thereby diminishing reliance on foreign imports. Renowned for pioneering India’s first-ever state-of-the-art surface-to-surface missile, the Prithvi, BDL enjoys a formidable market position, commanding respect for its quality and reliability in the Indian defense sector.

Bharat Dynamics Financial Trends

Here’s an overview of Bharat Dynamics’ financial performance based on publicly accessible data:

Revenue Trends:

There’s a mixed outlook:

  • Short-term: Revenue has shown growth in the past year, approximately 11.64%.
  • Long-term: Over the past three years, there’s been a negative growth trend, approximately -7.1% .

Profit Trends:

Similar to revenue, the picture is mixed:

  • Short-term: Profits have notably increased in the last year, around 29.55%.
  • Long-term: Profit growth has been negative over the past three years, approximately -13% .

Profitability Metrics:

Return on Equity (ROE) and Return on Capital Employed (ROCE) have exhibited moderate performance over the past three years, ranging from 11.35% to 16.24% for ROE and from 15.69% to 23.44% for ROCE.

Debt Situation:

Bharat Dynamics seems to be in a favorable financial position regarding debt, with a very low debt-to-equity ratio, indicating minimal debt compared to shareholder equity.

Stock Performance:

BDL’s stock price has shown strong performance recently, with significant growth across various timeframes (1 week, 1 month, 3 months, 6 months, 1 year, 3 years, and 5 years). However, the current high PE ratio suggests that the stock may be overvalued.

Bharat Dynamics Share Price Target 2024

With the burgeoning demand for defense products infused with new technology, Bharat Dynamics (BDL) is strategically charting a course to establish fresh manufacturing units across diverse locations, ensuring a continuous manufacturing workflow.

Presently, the company operates three manufacturing units in Hyderabad, Bhanur, and Visakhapatnam. However, in the pipeline are plans for swift operationalization of manufacturing facilities in Ibrahimpatnam, Jhansi, and Amravati.

Management anticipates the rapid operationalization of these new units, enabling Bharat Dynamics (BDL) to venture into manufacturing defense products encompassing cutting-edge technologies.

Forecasts suggest that the company’s business trajectory is poised for accelerated growth in the foreseeable future.

As for Bharat Dynamics (BDL) Share Price Target by 2024, the initial target is projected at Rs 1605, promising noteworthy returns until 2024. Subsequently, the second target is anticipated to yield a profit of Rs 1705

Bharat Dynamics Share Price Target 2025

Bharat Dynamics (BDL) is experiencing a robust surge in its order book, propelled by the government’s sustained investments in the defense sector over recent years.

Presently, the company’s order book stands at approximately 12,000 crores, with export orders estimated at around 349 crores.

Industry analysts attribute this growth to Bharat Dynamics (BDL)’s agile development of diverse defense products leveraging cutting-edge technology, resulting in a notable uptick in both domestic and export orders.

Forecasts suggest a further substantial increase in the company’s order book in the near future.

As the order book value continues to climb, Bharat Dynamics (BDL) Share Price Target for 2025 is poised to reach the initial target of Rs 1855, promising lucrative returns. Subsequently, holding the second target at Rs 2055 is anticipated.

Bharat Dynamics Share Price Target 2026

Bharat Dynamics (BDL) has long prioritized bolstering its research and development (R&D) efforts to drive innovation and the advancement of new technologies.

Each year, the company allocates a significant portion, approximately 2 to 4 percent of its total sales, exclusively to R&D, enabling continuous development of defense products leveraging cutting-edge technologies.

Moreover, Bharat Dynamics (BDL) actively collaborates with the Defence Research and Development Organisation (DRDO) to spearhead the development of numerous defense products, further enhancing the company’s R&D capabilities.

These initiatives are poised to facilitate the creation of even more sophisticated defense products in the future.

With a Share Price Target of Rs 2255 by 2026, Bharat Dynamics (BDL) demonstrates commendable growth prospects. Upon achieving this milestone, anticipation is high for another target of Rs 2465 in the near future.

Bharat Dynamics Share Price Target 2030

The government’s steadfast commitment to bolstering domestic defense manufacturing under the Atmanirbhar Bharat scheme is poised to create substantial growth prospects for Bharat Dynamics (BDL) in the foreseeable future.

With a strategic emphasis on reducing defense imports and progressively enhancing exports, the government is actively fostering an environment conducive to the development of indigenous defense products, including those manufactured by Bharat Dynamics (BDL).

Backed by substantial investments and unwavering support from the government, the company stands to benefit significantly from the prevailing opportunities.

Considering the long-term business outlook, Bharat Dynamics (BDL) Share Price Target for 2035 holds promising potential, with expectations reaching approximately Rs 4555, offering lucrative returns to its shareholders.

Disclaimer:

The information in this article is solely the author’s opinion and does not constitute investment advice; it is provided solely for educational purposes. By using this, you acknowledge that the information does not constitute investment or financial advice. Before making any investment decisions, do your own research and consult with financial advisors.

Read more

Leave a Comment