Stock Of The Day: Bharat Dynamics Q4 Profit Nearly Doubles — Key Levels, Analyst Take
All you need to about Bharat Dynamics fourth-quarter performance.
Bharat Dynamics Ltd.'s net profit jumped 89% year-on-year to Rs 289 crore in the fourth quarter of fiscal 2024. The missile and defence equipment manufacturer also recorded a turnover of Rs 2,350 crore for the financial year 2024. While its order book stood at Rs 19,468 crore.
Shares of Bharat Dynamics rose as much as 5.33% before erasing gains to trade 2.11% lower at Rs 1,516 per share at 10:19 a.m. This compares to a 0.35% gain in the benchmark Nifty.
The stock has risen 75.37% year-to-date. Total traded volume so far in the day stood at 0.83 times its 30-day average.
Bharat Dynamics Q4 Result: Highlights (Consolidated, YoY)
Revenue rose 7% to Rs 854 crore.
Ebitda rose 72.5% to Rs 316 crore.
Margin expanded 1,400 basis points to 37%.
Net profit rose 89% to Rs 289 crore.
Key Levels To Watch
Resistance level: Life high of Rs 1,658.95 per share.
Support level: Rs 1,246.2 apiece (two-week low).
Business
Bharat Dynamics was founded in Hyderabad in 1970 as a Government of India enterprise under the Ministry of Defence. It manufactures anti-tank guided missiles, surface-to-air missile weapon systems, air-to-air missile weapon systems, and more.
It is the sole manufacturer of missiles, torpedoes, and weapon system integrators for the armed forces, and it has also developed a countermeasure dispensing system.
The company has three manufacturing units—two in Telangana and one in Andhra Pradesh.
Brokerage View
ICICI Securities Ltd. revised its rating on the company to an 'add' from a 'buy', with a target price of Rs 1,630 per share—which was the stock's intraday high on Friday.
Despite the ongoing geopolitical tensions in Europe and the Middle East impacting the company over the last two years, the brokerage noted that its order book remains robust. Bharat Dynamic's order execution will pick up in the second half of fiscal 2025 and is likely to result in revenue growth in the financial year 2025, it said.
Going ahead, ICICI Securities expects Bharat Dynamics' Ebitda margin to improve as platforms with more indigenised content get executed.
