Bharat Dynamics Share Price Dips After Q4 Profit, Margins Contract

Bharat Dynamics Ltd. saw its share price drop over 6% after its fourth quarter net profit fell and margins contracted.

Net profit of the company fell by 6%, amounting to Rs 272.77 crore, against Rs 288.77 crore. This, even as revenue increased 112.2% to Rs 1,800.54 crore, compared to Rs 848.56 crore in the same period last year.

Earnings before interest, taxes, depreciation, and amortisation rose by 4% to Rs 322.53 crore from Rs 310.84 crore.

Meanwhile, the Ebitda margin narrowed significantly to 17.9% from 36.6%, indicating increased costs or lower efficiency.

The scrip fell as much as 6.03% to Rs 1,842 apiece. It pared losses to trade 4.38% lower at Rs 1,874.30 apiece, as of 10:02 a.m. This compares to a 0.25% decline in the NSE Nifty 50.

It has risen 28.96% in the last 12 months. Total traded volume so far in the day stood at 2.5 times its 30-day average. The relative strength index was at 66.

Out of 10 analysts tracking the company, six maintain a 'buy' rating, three recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 19%.