A much-awaited stock split of a major defence PSU company in the extraordinary performance defence sector is likely to be in focus during May month. The stock split in talks is of 1:2 ratio, meaning 1 equity share of this defence PSU will be split into two, doubling the portfolio and becoming cheaper for fresh buying to both new and existing investors. It is neither Bharat Electronics (BEL) nor Hindustan Aeronautics (HAL) but instead Bharat Dynamics (BDL). These three companies are top players in the defence sector, but only BDL is going to split!
Bharat Dynamics Share Price:
Currently, BDL's share price stands at Rs 2018.70 apiece with a market cap of Rs 36,998.99 crore. On April 26th, the share price dipped by over 2%. BDL is a multi-bagger defence stock!
YTD, the stock is up 17% on BSE. But in a year, BDL shares have gained by over 101%. And, in 5 years, BDL stock is up by a whopping 627%.
Earlier, this month, BDL paid an interim dividend of Rs 8.85 per share having a face value of Rs 10 each. BDL turned ex-dividend on April 2nd, and it had fixed the payment of Interim Dividend will be completed on and before 18 April 2024.
Bharat Dynamics Stock Split:
The biggest upcoming event in BDL is now its 1:2 stock splits. BDL announced that its existing 1 (One) Equity Share of the face value of Rs. 10/- (Rupees Ten Only) each fully paid up into 2 (Two) Equity Shares of the face value of Rs. 5/- (Rupees Five Only) each fully paid up, subject to shareholders' approval.
The record date for stock splits will be announced in due course.
BDL said, "The record date for the above sub-division/ split of Equity Shares shall be decided after obtaining approval for sub-division/ split from the shareholders through postal ballot electronic voting process and will be intimated in due course."
The reason why BDL has decided to carry a stock split is to comply with DIPAM Guidelines on Capital Restructuring; To encourage wider participation of small investors, and To enhance the liquidity of the Equity Shares of the Company in the Stock Market.
The record date can be announced in the company months, as BDL has declared to complete the stock splits in about 2-3 months from the date of shareholders' approval.
Bharat Dynamics Share Price Target:
BDL has broadly met brokerages' targets. There is a short-term buy recommendation by brokerage Antique Stock Broking to buy BDL shares for a target of Rs 2,045. Antique expects the earnings per share (EPS) of BDL to rise to Rs 47.8 in FY25 and further to Rs 63.9 in FY26. While its price-to-equity ratio is estimated to jump to 72.4x in FY25 and to 53.5x in FY26. Also, the brokerage forecasts a 23.4% return on equity and a 32% return on capital employed by the end of FY25.
In technical terms, BDL's indicators look positive and stable with MFI leaning on to bearish stick. As per Trendlyne data, BDL's momentum score is at 73.58, which is technically strong as a score above 70 is considered as technically Strong. Moreover, BDL's MACD is above its centre and signal Line, this is a bullish indicator. Also, its RSI is at 69.7 which is stable as RSI below 30 is considered oversold and above 70 overbought. However, MFI is at 80.7 and it implies that the stock may show a pullback.
Further, the data revealed that BDL's weekly average delivery volume is 27.17%, while it is trading above 8 out of 8 SMAs, and above 5 out of 9 Oscillators in bullish zones.
Bharat Dynamics Limited (BDL), was incorporated on 16 July 1970 in Hyderabad, Telangana 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 became a listed company in March 2018 by listing its equity shares on the Bombay Stock Exchange and the National Stock Exchange. The Company has 2556 employees as of 31 March 2023 and achieved a sales turnover of Rs.2458 Crore (Provisional & Unaudited) for the financial year 2022-23.
BDL, since its inception, has been working in collaboration with DRDO & Foreign Original Equipment Manufacturers (OEMs) for the manufacture and supply of various missiles and allied equipment to the Indian Armed Forces.
BDL, since its inception, has been working in collaboration with DRDO & Foreign Original Equipment Manufacturers (OEMs) for manufacture and supply of various missiles and allied equipment to Indian Armed Forces.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
Click it and Unblock the Notifications
Sign in with Google