Bharat Dynamics reported 108% YoY growth in revenue, amounting to Rs 17.8 bn in Q4 FY25 led by higher execution. Ebitda declined to Rs 2.9 billion as compared to Rs 3.2 billion in Q4 FY24. Ebitda margin was lower at 16.8% as compared to 37% in Q4 FY24 primarily due to higher raw material costs which grew by 122% YoY, and other expenses which grew by 189% YoY. This was due to certain provisions made by the company during the quarter.
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.
Nirmal Bang Report
Bharat Dynamics Ltd.'s revenue, Ebitda, and PAT Growth CAGR during FY25E-FY27E stand at 27%, 75%, and 53%, respectively. The stock has rallied 29% in the last month. The company is trading at a 1-year forward P/E ratio of 54.5x, which is higher than its five-year average of 34.4x.
We maintain our Hold rating on Bharat Dynamics, while increasing the multiple by 58% and value it at 54x March'27E EPS, above the 5-year average P/E, which implies a 0.4% downside with a target price of Rs 1,909.
The increase in multiple can be justified based on improvements in Ebitda margins underpinned by a decline in provisions in other expenses and raw material costs.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
