Fundamental Analysis

BHARAT DYNAMICS LTD. 

Ticker : 541143
BUY: ₹ 544.30
Target: ₹ 610

Bharat Dynamics Limited (BDL) is a Government of India enterprise. It is engaged in the manufacturing of guided missiles and allied defence equipment. On a consolidated basis, the company recorded net sales and other operating income of Rs 803.91 crore, higher by 75.13 per cent than Rs 459.02 crore reported in Q3FY21. Operating profit was recorded at Rs 324.18 crore in Q3FY22, a robust rise as compared to an operating profit of Rs 94.26 crore in Q3FY21. Q3FY22 recorded a net profit of Rs 213.26 crore in comparison with a net profit of Rs 49.19 crore in Q3FY21, giving a significant rise. Due to the rising demand for indigenisation, the defence sector is currently holding a positive outlook. The factors like the government’s decision to ban imports of subsystems & components from Russia and the Parliamentary Standing Committee aiding in a 44 per cent rise in defence capital budget are likely to benefit the defence stocks. Hence, we recommend BUY.