BDL Share Price: Zero-debt defence PSU giant, Bharat Dynamics (BDL) is all set to reward its investors on Valentine's Day. The defence player is going to turn ex-dividend for Rs 4 per share on February 14. BDL which competes against giants like BEL and HAL, is currently trading below Rs 1,200 levels. Brokerage Elara Capital has suggested accumulating the stock for a target price of Rs 1,360.
Bharat Dynamics Share Price:
After market hours on BSE, BDL's share price ended at Rs 1199.45 apiece on February 10. The stock's 52-week high and low is at Rs 1,794.70 apiece and Rs 776.08 apiece respectively. BDL is a debt-free stock with a price-to-equity ratio of 77.73x, and while return on equity of 15.16% currently.
Bharat Dynamics Dividend:
BDL has declared an interim dividend of Rs 4 per share with a face value of Rs 5 each for FY25. The fixed 14 February 2025 as the "Record Date" for the purpose of payment of Interim Dividend on equity shares.
This upcoming dividend comes after Rs 9.70 per share payout in 2024. 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.
Should You Buy BDL Stock Price?
In its latest report, Elara Capital highlighted that Bharat Dynamics (BDL IN) saw robust top-line growth with strong margin expansion in Q3FY25, as the company resolved its global supply chain issues through the indigenization of components. Q3 sales saw growth of 34% YoY, as supply chain issues on raw materials prevalent in H1FY25 have been resolved, and the company is focused on the execution of key orders, such as the Akash missile exports and the Astras missile orders.
Elara expects BDL to be the key beneficiary of a robust order pipeline, which includes the quick reaction surface-to-air missile (QRSAM) worth INR 200-250bn, MRSAM for the Navy, large order for ATGM, exports order for the Akash, and smaller ticket orders for the Nag, the Helina & the Dhruvastra missiles.
Additionally, the brokerage highlighted that , it has developed the unmanned aerial vehicle (UAV)-launched precision guided missile (ULPGM), which is likely to garner robust demand, due to its unique nature of launching missiles through a drone, which returns. The company is working with the Defence Research and Development Organisation (DRDO) to develop new products. These steps would help propel revenue growth.
On the valuation, Elara's note said, "We raise our FY25E EPS by 6% due to strong margin expansion in Q3 as well as 9MFY25 and raise FY26E EPS by 1%. We raise our TP to INR 1,360 from INR 1,300 on 39x (unchanged) December FY26E P/E as we roll forward."
Lastly, it said, "We reiterate Accumulate, as BDL is a key beneficiary of a robust order pipeline for domestic as well as export markets, being the only DPSU missile manufacturer, and growth momentum is set to continue in Q4, led by focused execution. We expect an earnings CAGR of 48% during FY24-27E with an average ROE of 23% during FY25-27E. Key risks to our call could be the slowdown in defence capex and order inflows."
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.
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