 "Bharat Dynamics Ltd Akash Weapon System")
Shares of Bharat Dynamics extended their rally into a third consecutive session, up 5 per cent on the BSE at Rs 2,437 apiece, in Saturday's special trading session.
Including's today's rally, the stock has surged 22 per cent in three days. By comparison, the benchmark S&P BSE Sensex has added 1.4 per cent during the period.
Over the past one year, Bharat Dynamics stock price has zoomed 116 per cent on the BSE, while on a year-to-date (YTD) basis, the stock is up 35 per cent in calendar year 2024 (CY24).
Bharat Dynamics Limited (BDL) is one of India's leading manufacturers of ammunition and missile systems. It works in collaboration with the Defence Research and Development Organisation (DRDO) and foreign original equipment manufacturers (OEMs) for manufacturing and supplying various missiles and allied equipment to the Indian Armed Forces.
The Board of directors of Bharat Dynamics is scheduled to meet on May 30, 2024, to announce financial results for the March quarter (Q4) and full financial year of 2023-24 (FY24).
The Board may also consider and approve dividend for financial year 2023-24 (FY24), if any.
Meanwhile, during the December quarter of FY24 (Q3FY24), Bharat Dynamics' revenue was up 30 per cent Y-o-Y with Ebitda margin marginally improving to 20 per cent. Ebitda increased by 34 per cent Y-o-Y.
"Company's order backlog is estimated at Rs 20,000 crore (9x TTM revenue), which provides healthy growth visibility. Orders pipeline also remains strong (in both domestic and exports) which includes various SAM (Surface to Air missile) variants including Akash NG, Quick Reaction (QRSAM) & Vertical launched Short Range (VLSRSAM), ATGM (Anti-Tank Guided Missile) like Helina/Dhruvastra, Nag, MPATGM, Smart Anti-Airfield Weapon (SAAW), Astra MK2, torpedoes etc. The strong pipeline provides more comfort on future growth visibility," analysts at ICICI Direct had said post Q3 results update.
Bharat Dynamics, according to analysts, has been investing in infrastructure, increasing capacity and expanding R&D activities, both in-house and in association with DRDO for various development and production programmes.
BDL has also been focused on entering into various agreements with foreign OEMs, both for manufacturing in India as well as joint development programmes, catering to domestic customers and export markets. The products/projects under development includes Amogha-III ATGM, Drone fired missiles and bombs, LBRM (Laser Beam Riding Missile), Mistral short-range missile system, ASRAAM (Advanced Short Range Air-to-Air Missile), SPIKE ER2 etc.
Recently, on May 7, 2024, the company announced that the joint venture agreement to incorporate a company under Defence Testing Infrastructure Scheme (DTIS) promulgated by Department of Defence Production, Ministry of
Defence has been executed between consortium of five companies i.e. Bharat Dynamics Limited, Mishra Dhatu Nigam Limited (MIDHANI), Hindustan Aeronautics Limited, Yantra India Limited, and PTC Industries Limited. This is along with Uttar Pradesh Expressways Industrial Development. The consortium is being led by MIDHANI.
The proposed incorporation of the company with the Ministry of Corporate Affairs will bear the name 'Advanced Materials (Defence) Testing Foundation' or any other similar name as the case maybe," it said in an exchange filing.
"We believe Bharat Dynamics is strongly placed to benefit from increasing capital outlay for indigenised defence platforms like missiles, torpedoes & Countermeasure dispensing systems. We estimate revenue, Ebitda, and PAT to grow at 29.4 per cent, 41.4 per cent, and 46.9 per cent CAGR, respectively over FY23-26," ICICI Direct said.
