Defence PSU, Bharat Dynamics which recently turned ex-split, is among the top performing stocks in the sector. On June 3, the stock along with its peers like BEL and HAL rallied to hit new high. There is still potential of upside with target price above Rs 2,000. BDL will be rewarding investors with dividend payout of Rs 0.85 per share for FY24 anytime soon.
Bharat Dynamics Share Price:
With the expectations of Modi government-win in 2024 election, defence stocks were flying to their new highs, and BDL was no different. BDL share price ended at Rs 1596.70 apiece, up by 2.53% on BSE with market cap of Rs 1596.70 crore. BDL shares rallied to hit new 52-week high of Rs 1,660 apiece during the trading hours.
YTD, BDL stock is up by 85%.
Bharat Dynamics Dividend:
BDL has recommended a final Dividend @ Rs 0.85 per share (face value of Rs.5/-each) for FY24. This Dividend upon approval by the shareholders at the ensuing Annual General Meeting(AGM) will be paid within 30 days from the date of the AGM.
This payout will be in addition to the highest ever interim dividend payout of Rs 8.85 per share or 88.5% by the company earlier in 2024. Together, the company's payout will be Rs 9.7 per share in FY24.
As per the Trendline data, BDL has delivered up to 12 dividends since September 2018.
Bharat Dynamics Earnings:
FY24 revenue stood at Rs 2,369.27 crore, down from Rs 2,489.39 crore in FY23. On the other hand, FY24 PAT was at Rs 612.72 crore versus Rs 352.17 crore in FY23.
In Q4FY24, the company's revenue rose to Rs 854.12 crore compared to Rs 798.25 crore in Q4FY23, while PAT was at Rs 288.77 crore as against Rs 152.75 crore in Q4 of the previous fiscal.
Bharat Dynamics Stock Split:
BDL stock has split into a 1:2 ratio, meaning, 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.
The reason why BDL carried 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.
BUY/SELL? BDL SHARES?
As per Trendlyne data, the consensus recommendation from 7 analysts for Bharat Dynamics Ltd. is BUY. Of the total, 4 experts have given 'STRONG BUY' while 1 expert has suggested 'BUY'. While 1 analyst has given 'HOLD' and 1 has given 'SELL' on the stock. EPS is expected to grow by 49.5% in FY24.
Also, as of June 4, 2024, brokerage ICICI Direct has maintained its BUY recommendation on BDL shares for a target of Rs 2,010 apiece ahead. The entry price is now Rs 1,661 for buying the stock. The target has a timeframe of 12-18 months.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, 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.
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