Trade Alert: Sumeet Bagadia Calls Miniratna Stock A Buy For A TP of Rs 2035

As a Public Sector Undertaking under the Ministry of Defence, Bharat Dynamics Limited is one of India's manufacturers of missile systems and related equipment for the Indian Armed Forces. Let's talk about the rationale behind the stock pick after Choice Broking's Executive Director Sumeet Bagadia suggested buying the stock and holding it for one to three months with a target price of Rs 2035 following the company's Q3 results.

Bharat Dynamics Share Price Target

Buy BDL @ Rs 1817 and add upto Rs 1785, with a target of Rs 2035 and a stop loss at Rs 1687.

BDL is currently trading at Rs 1817. The stock has recently undergone a range breakout accompanied by significant trading volume, heightening market expectations for further upward movement, with a potential target of Rs 2035.

On the downside, notable support is observed in the vicinity of Rs 1770. Furthermore, BDL is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50- day, 100-day, and 200-day EMAs. This indicates robust bullish momentum and suggests the potential for additional upward price movement.

The Relative Strength Index (RSI) is presently at 76.6, indicating an upward trajectory and signaling increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. Collectively, these technical indicators suggest that BDL may have the potential to reach a target price of Rs 2035 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 1687 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of Rs 1785. Overall, considering the technical analysis and current market conditions, BDL presents a promising buying opportunity for those aiming for a Rs 2035 price target, provided that prudent risk management measures are in place.

Bharat Dynamics Financials

Leading ammunition and missile maker Bharat Dynamics announced an impressive consolidated net profit of Rs 135 crore for the October-December quarter, representing a strong 61% YoY increase from Rs 84 crore in Q3FY23. Consolidated revenue from operations for the firm increased significantly as well, rising 30% YoY to Rs 602 crore in Q3FY24 compared to Rs 462 crore in the same quarter of the previous fiscal. Comparing the EBITDA for the reporting period to the same time in the previous fiscal year, it jumped by an astounding 32% to Rs 119 crore from Rs 90 crore. The margin improved steadily in Q3FY24, ending at 19.8%, a little higher than the 19.5% margin in Q2FY24.

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.