Target: ₹ 1,817

CMP: ₹ 1,604.60

Bharat Dynamics Ltd (BDL) is a Government of India Enterprise under the minister of defense specialising in the manufacturing of surface to air missiles, air to air! Torpedoes and allied defense equipment.

As of March 31, 2025, The Company’s Order-Book Study at ₹ 22,700 Crore (6.8x of Its FY25 Consolidated Revenue). Over the past two years, BDL’s operating performance has not fully aligned with its potential due to the supply chain challenges it has decided. However, these challenges have gradually subsided, indicating that execution is anticipated to improve in fy26.

BDL is poised to capitalise on a total addressable market size of ₹ 50,000 Crore, AlongSide An Emergency Processed Procurement Program (About ₹ 40,000 Crore). The company has the opportunity to engage in Various Missile Procurement Initiatives for New Naval, Airborne and Army Platforms. It aims to secure orders worth ₹ 20,000-30,000 Crore.

The company has set up an integrated radio frequency (rf) seeker facility at its Kanchanbagh Unit, Allowing for in-House Production and Testing of RF seekers. This Approach Reduces Reliance on Costly Imports and Enhances Value Addition.

DURING Q1Fy26, The Company Reported Sels at ₹ 248 Crore, Up 30 per cent. Ebitda Margins Improved from 27 per cent to 18 per cent. However, pat studs at ₹ 18 Crore, up 157.1 per cent. At CMP, The Company Trades at FY26E/FY27E P/E Multiple of 58.8x/41.8x bloomberg consensus estimates respectively.

Key Risk Factors: Decline in the Indian defense budget; Termination of existing contracts; Supply Chain Related Issues.

Published on September 16, 2025