Target: ₹1,274

CMP: ₹1,155.85

Bharat Dynamics (BDL) is a leading Defence PSU in India manufacturing guided missile systems. It is engaged in the manufacturing of surface to air missiles, anti-tank guided missiles, underwater weapons (torpedoes), air-borne products and allied defence equipment, such as launchers, counter measures dispensing system and test equipment.

BDL has been working in collaboration with DRDO and foreign original equipment manufacturers for manufacture and supply of various missiles and allied equipment to Indian Armed Forces. The company is continuously engaged in new product development and upgradation of existing products. The market for guided missiles and torpedoes is expected to gain significant traction with India modernising its armed forces.

Order book of the company as of Sept’23 stood at ₹20,766 crore (9.6x TTM revenue) which is executable in the next 4-5 years. BDL’s guided missile portfolio forms more than 55 per cent of India’s guided missile and torpedo market which is expected to reach $25 billion by CY26.

Such large order book provides headroom for growth over the next 3-4 years. Going ahead, we expect execution to pick up in H2FY24 and FY25.