1:2 Split, 14 Dividends: Defence PSU BDL Wins Big Order; Time To Buy This Zero-Debt Stock?

BDL announced on March 26 that it signed a contract worth Rs 4362.23 Crore with Ministry of Defence for supply of armaments to Indian Armed forces. Following this, the stock ended higher by 1% to Rs 1326.65 apiece on BSE.

BDL shares are recommended to BUY.

Also, as per Antique Stock Broking, MoD has signed a contract with BDL for the supply of Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy worth INR 29.6bn bolstering the order book to ~ INR 207bn (8.5x TTM revenue) with a promising ordering pipeline worth INR 200bn+ from the next two to three-year perspective, with large-ticket orders like Astra MK II, QRSAM, and MRSAM expected to be finalized. Execution is expected to pick-up & BDL is anticipating a revenue growth of +30% and a margin of ~16%+ in FY26 as supply chain issues, which were prevalent on account of geopolitical issues between Israel and Hamas gets normalized.

Accordingly, Antique Stock Broking recommended BUY on BDL for a target price of Rs 1,351 apiece.

Headquartered in Hyderabad, Bharat Dynamics Limited (BDL), was incorporated on 16 July 1970 as a Public Sector Undertaking under the Ministry of Defence, Government of India to be the manufacturing base for guided missile systems and allied equipment for the Indian Armed Forces.

BDL shares have delivered about 14 dividends since September 2018. Not just that, BDL had also carried its first-ever stock split in the ratio of 1:2, where a face value of Rs 10 was cut to Rs 5 in May 2024. BDL has never rewarded investors with bonus issues.