President of India-backed multibagger aerospace & defence stock with Rs 20,070 crore order book; Board announces stock split!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 901 per share and a whopping 500 per cent in 3 years.

Today, the Indian stock market started the day in green with the BSE Sensex Index up by 0.17 per cent and the NSE Nifty-50 Index up by 0.19 per cent. On the broader markets, the indices were trading in green with BSE Mid-Cap Index up 1 per cent and BSE Small-Cap Index up 0.91 per cent.

Though the market was in green, one multibagger stock backed by the President of India from the aerospace & defence sector plunged 0.58 per cent to Rs 1,966.95 per share with an intraday high of Rs 1,998 and an intraday low of Rs 1,962.20.  

Before disclosing the stock name, let's examine the latest update from the company's Board of Directors: -  

The Board of Directors of the company has approved a stock split in the ratio 1:2 i.e., the existing 1 equity share of the face value of Rs 10 each fully paid up shall be sub-divided/ split into 2 equity shares of the face value of Rs 5 each fully paid up. The company has fixed May 24, 2023, as the record date for stock split of equity shares.  

The stock name is Bharat Dynamics Ltd (BDL).

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Established in 1970, Bharat Dynamics Ltd (BDL) is a Government of India enterprise that manufactures missiles, weapon systems, and related equipment for the Indian Armed Forces. They are the sole manufacturer and integrator of missiles and torpedoes for the Indian military, and their products include surface-to-air missiles, air-to-air missiles, and underwater weapons. BDL is continuously expanding its operations and capabilities, with new facilities and technology implementations underway.

The President of India owns the majority of the stake (74.93 per cent) while FIIs own 3.09 per cent, DIIs own 13.32 per cent and the public owns 8.66 per cent. The company has a market cap of over Rs 36,000 crore while its order book stands at Rs 20,070 crore as of January 2024. According to its Quarterly Results (Q3FY24), half-yearly results (H1FY24), nine-month results (9MFY24) and annual results (FY23), the company reported constant positive numbers.

The company's shares have a PE of 70x, an ROE of 12 per cent and an ROCE of 16 per cent. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 901 per share and a whopping 500 per cent in 3 years. Investors should keep an eye on this mid-cap aerospace & defence stock.

Disclaimer: The article is for informational purposes only and not investment advice.