PSU Defence Co Issues Record Date For Dividend, Shares Gain 298% In 2-Yrs; Buy

Mid cap Miniratna public sector undertaking from the aerospace & defence industry, Bharat Dynamics shares witnessed a rally of 0.36% in trade today to settle at Rs 1847.35 apiece. Earlier, Bharat Dynamics has scheduled a meeting of Board of Directors for March 15, 2024 to consider payment of interim dividend for the financial year 2023-24. The PSU has fixed March 26, 2024 as the record date for interim dividend. Bharat Dynamics shares offered investors return of 95% in last 1-year and 51% return in last 3-months. Check details below:

Bharat Dynamics To Consider Interim Dividend: As per the regulatory filing of Bharat Dynamics dated March 1, 2024, "We wish to inform that a meeting of the Board of Directors of the Company is scheduled to be held on Friday, 15th March 2024 inter-alia to consider payment of Interim Dividend for the financial year 2023-24. The Company has fixed Tuesday, 26th March 2024 as the "Record Date" for the purpose of payment of Interim Dividend on Equity Shares for the Financial Year 2023-24, if declared by the Board."

Bharat Dynamics Shares Performance & Return: The 52-week high price of Bharat Dynamics shares on BSE is Rs 1984.40 apiece and 52-week low price is Rs 879.00 apiece, respectively. The company has a market capitalisation of Rs 33,858.46 crore. Bharat Dynamics shares soared 62% in last 6-months, rallied 95% in last 1-year, zoomed 298% in last 2-years, and offered gain of 382% in last 3-years. In last 5-years, the scrip soared 545%.

Bharat Dynamics Financials: The company for the quarter ended December 31, 2023 declared its consolidated net profit at Rs 135 crore, up 61% YoY as compared to Rs 84 crore in the corresponding quarter of last year. The company's revenue from operations zoomed 30% year-on-year (YoY) to Rs 602 crore for Q3 FY2024 as against Rs 462 crore in the similar quarter of preceding fiscal. Its EBIDTA for the quarter under review surged by 32% to Rs 119 crore from Rs 90 crore in the last fiscal. Margin for Q3FY24 grew 19.8% against 19.5% in Q2FY24.

ICICI Direct Recommends Buy: According to the brokerage firm, "We believe BDL is strongly placed to benefit from increasing capital outlay for indigenised defence platforms like missiles, torpedoes & Counter measure dispensing systems. We estimate revenue, EBITDA and PAT to grow at 29.4%, 41.4% and 46.9% CAGR respectively over FY23-26E. Valuation at 27.3x P/E on FY26E basis looks attractive given strong growth ahead led by multiple sectoral tailwinds. We recommend BUY on BDL with target price of ₹ 2010 per share (based on 33x FY26E EPS)."
If you buy Bharat Dynamics shares at the current market price of Rs 1847.35, you can fetch potential return of 8.8%.

Bharat Dynamics Ltd About: 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. Since its inception, BDL 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 stocks have been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.