Bharat Dynamics - Execution Likely To Pick Up: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.While FY24 revenue was impacted by supply-chain issues, we expect Bharat Dynamics Ltd.'s revenue to pick up from Q2 FY25 primarily led by execution of anti tank guided missiles, surface to air missiles and export orders. In FY26E, we expect revenue growth to be primarily driven by the execution of third and fourth regiment of Akash. While margins are likely to be slightly lower as execution of weapon systems entails higher component of bought out items, we are positive on the management’s guidance of doubling the revenue over the next five years and reaching Rs 100 billion in next 10 years. .Overall focus of the government in augmenting rocket force along the border implies missile/rocket programmes are likely to be expedited.Factoring management’s guidance, we have lowered our revenue estimates for FY25/26E by 24%/29%; however, we raise our long-term revenue forecast from Rs 70 billion to Rs 100 billion.Besides, we raise the terminal growth estimate to 7.5% (earlier 7%) owing to the fresh revenue streams and the new platforms the company is pursuing. Our revised target price works out to Rs 1,745 (earlier Rs 1,630). Maintain Add..Key risksDelay in receipt of components and parts due to the ongoing Israel – Palestine skirmish. Execution delay in key platforms such as SAMs and torpedoes. Higher LD provisioning.Click on the attachment to read the full report:.UltraTech Cement - India Cements Stake Purchase: A Foot In The Door? ICICI Securities Analysis.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bharat Dynamics - Execution Likely To Pick Up: ICICI Securities

Revenue likely to hit Rs 100 billion in 10 years

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