President of India-backed multibagger aerospace & defence stock with Rs 20,070 crore order book; Board is likely to announce a stock split & dividend proposed!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 879 per share and a whopping 400 per cent in 3 years.

Today, the Indian stock market started the day in red with BSE Sensex Index down by 0.25 per cent and NSE Nifty-50 Index down by 0.29 per cent. On the broader markets, the indices were trading in red with BSE Mid-Cap Index down 0.56 per cent and BSE Small-Cap Index down 1 per cent.

Though the market was in red, one multibagger stock backed by the President of India from the aerospace & defence sector, gained 4.01 per cent to an intraday high of Rs 1,866.10 per share from its previous closing of Rs 1,794.10.  

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

The company's Board of Directors is meeting on Thursday, March 21st, 2024, to discuss, among other things, paying an interim dividend for the financial year 2023-24 and potentially a stock split/sub-division of the company's shares. The record date to determine who receives the dividend, if approved, has been changed to Tuesday, April 2nd, 2024.

The buzzing stock name is Bharat Dynamics Ltd (BDL).

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 33,000 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 shares of the company 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 879 per share and a whopping 400 per cent in 3 years.

Do you own Bharat Dynamics Ltd.’s stock in your portfolio? Do let us know in the comment

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