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Business Standard
18-07-2025
- Business
- Business Standard
Bharat Dynamics stock down 20% from all-time high; what brokerages say
Bharat Dynamics share price Shares of Bharat Dynamics (BDL) continued to remain under pressure, falling 3 per cent to ₹1,687 on the BSE in Friday's intra-day trade. The stock price of the state-owned defence company was quoting lower for the seventh straight trading day, declining 15 per cent during the period. It has corrected 20 per cent from its all-time high of ₹2,096 touched on May 30, 2025. However, despite a price correction from its record high, thus far in the calendar year 2025, BDL has outperformed the market by surging 50 per cent. In comparison, the BSE Sensex was up 4 per cent during the period. BDL had hit a 52-week low of ₹897.15 on November 18, 2024. CATCH STOCK MARKET LATEST UPDATEST LIVE Brokerages view on Bharat Dynamic In July 2025, Motilal Oswal Financial Services (MOFSL) initiated coverage on BDL with a 'Neutral' rating. The brokerage firm said it likes the business model of BDL and its ability to scale up its revenues and order book in current scenario, however, with fair valuations, analysts said they would look for lower price points to enter the stock. Currently, BDL is trading below MOFSL target price of ₹1,900 per share. Bharat Dynamics is a prominent player in missile technology within the defence sector and has established itself as a leading integrator for various missile platforms. With a focus on developing advanced guided missiles, underwater weapons, and airborne products, BDL currently holds an order book of ~₹22,700 crore and a prospect pipeline of ₹50,000 crore. In recent years, BDL's revenue has been adversely impacted by supply chain disruptions and difficulties in procuring essential components through imports from Russia and Israel. However, these issues are beginning to resolve, and analysts anticipate a rebound in revenue growth. Along with this, MOFSL also expects the company to benefit from upcoming emergency procurement pipeline as well as large orders such as quick reaction surface-to-air missiles (QRSAM). Meanwhile, analysts at Elara Capital downgraded BDL to Sell with a target price of ₹1,480 on 400-600bp lower-than-estimated margin as the current price already factors in all the positives and it has outperformed the Nifty in the recent past. The brokerage firm lowered its FY26E EPS by 17 per cent and FY27E EPS by 8 per cent on Akash missile execution from FY26 vs assumption in FY25, lower-than-expected margin in FY25 with likely less scope for further improvement. Analysts expect an earnings compounded annual growth rate (CAGR) of 46 per cent during FY25-28E with an average ROE of 24 per cent during FY26-28E. 'We are yet to factor in exports inflows as there is uncertainty on the order finalization timeframe, and this would be a catalyst to monitor,' the brokerage firm said. 'BDL's earnings before interest, taxes, depreciation, and amortization (EBITDA) margins are likely to be in the range of 16-18 per cent during FY26-27E as missile systems are largely indigenized. Revenue CAGR may grow by 30 per cent plus during FY25-27E (our est. CAGR of 39 per cent), driven by strong execution of ₹22,100 crore order book as on March 2025. The recent conflict highlighted product quality and combat mettle of BDL's product portfolio and would open various export opportunities,' Elara Capital said in the company update. Meanwhile, BDL in its FY24 annual report said that slowdown in the economic activities and lower defence budget by Government of India (GoI) could adversely impact the company's business. Higher dependency on single customer i.e. Ministry of Defence (MoD), cancellation of orders can weaken the order book and future revenue and opening up of the Defence sector are some threats for the company.
Mint
18-07-2025
- Business
- Mint
Bharat Dynamics, HAL, Mazagon Dock extend losses to third day amid profit booking; fall up to 4%
Defense stocks, including Bharat Dynamics, HAL, Mazagon Dock Shipbuilders, Bharat Electronics, Garden Reach Shipbuilders, and others, continued to witness selling pressure for the third straight session on Friday, July 18. In fact, the downtrend has persisted since the beginning of July. The steady decline in these counters appears to be a reaction to profit-booking by investors, following a strong rally over the past four months that pushed valuations to unsustainable levels. Among today's worst performers is Bharat Dynamics, which declined by 4% to ₹ 1,683 per share. This marks the seventh consecutive day of decline for the stock, leading to a 10% drop this week and a 20% decrease from its recent high. Other notable losers include Data Patterns, Drone Acharya Aerial Innovations, ideaForge Technology, HAL, Sika Interplant Systems, Mazagon Dock Shipbuilders, Astra Microwave Products, Apollo Micro Systems, Bharat Electronics, and Paras Defence and Space Technologies, all of which declined between 1.5% and 3.5%. Amid a sharp sell-off, the Nifty Defence index dropped 2% to hit a two-month low of 8,197 points and is on track to close the week in the red, after falling nearly 5% in the previous week. Defense stocks had made a strong comeback in March, with momentum picking up in May following the launch of 'Operation Sindoor,' during which India showcased the strength of its indigenously developed defense systems and successfully intercepted drones and missiles launched by Pakistan. The further rise in the tensions in the Middle East also supported the continued rally in these domestic-focused stocks. Additionally, strong March quarter earnings, rising order inflows, expectations of increased defense spending by the Indian government to further strengthen national security, and growing global demand for India's indigenously manufactured defense products have all played a role in driving defense stocks to record highs. This stellar performance also pushed the combined market capitalization of the 18 Nifty India Defence constituents past the ₹ 11 lakh crore mark for the first time, reaching ₹ 11.3 lakh crore. Over the years, the Government of India (GoI) has implemented numerous policy initiatives with Atmanirbhar Bharat at its core to enhance domestic defense production capabilities, encourage investments, and expand exports. As a result, defense procurement from domestic vendors has increased from 61% in FY2017 to about 75% in FY2025e, while exports have grown more than 15-fold, registering a healthy CAGR of 41% to reach ₹ 23,622 crore during the FY2017–FY2025e period, as per ICRA. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Business Standard
18-07-2025
- Business
- Business Standard
Bharat Dynamics stock down 20% all-time high; here's what brokerages say
Bharat Dynamics share price Shares of Bharat Dynamics (BDL) continued to remain under pressure, falling 3 per cent to ₹1,687 on the BSE in Friday's intra-day trade. The stock price of the state-owned defence company was quoting lower for the seventh straight trading day, declining 15 per cent during the period. It has corrected 20 per cent from its all-time high of ₹2,096 touched on May 30, 2025. However, despite a price correction from its record high, thus far in the calendar year 2025, BDL has outperformed the market by surging 50 per cent. In comparison, the BSE Sensex was up 4 per cent during the period. BDL had hit a 52-week low of ₹897.15 on November 18, 2024. Brokerages view on Bharat Dynamic In July 2025, Motilal Oswal Financial Services (MOFSL) initiated coverage on BDL with a 'Neutral' rating. The brokerage firm said it likes the business model of BDL and its ability to scale up its revenues and order book in current scenario, however, with fair valuations, analysts said they would look for lower price points to enter the stock. Currently, BDL is trading below MOFSL target price of ₹1,900 per share. Bharat Dynamics is a prominent player in missile technology within the defence sector and has established itself as a leading integrator for various missile platforms. With a focus on developing advanced guided missiles, underwater weapons, and airborne products, BDL currently holds an order book of ~₹22,700 crore and a prospect pipeline of ₹50,000 crore. In recent years, BDL's revenue has been adversely impacted by supply chain disruptions and difficulties in procuring essential components through imports from Russia and Israel. However, these issues are beginning to resolve, and analysts anticipate a rebound in revenue growth. Along with this, MOFSL also expects the company to benefit from upcoming emergency procurement pipeline as well as large orders such as quick reaction surface-to-air missiles (QRSAM). Meanwhile, analysts at Elara Capital downgraded BDL to Sell with a target price of ₹1,480 on 400-600bp lower-than-estimated margin as the current price already factors in all the positives and it has outperformed the Nifty in the recent past. The brokerage firm lowered its FY26E EPS by 17 per cent and FY27E EPS by 8 per cent on Akash missile execution from FY26 vs assumption in FY25, lower-than-expected margin in FY25 with likely less scope for further improvement. Analysts expect an earnings compounded annual growth rate (CAGR) of 46 per cent during FY25-28E with an average ROE of 24 per cent during FY26-28E. 'We are yet to factor in exports inflows as there is uncertainty on the order finalization timeframe, and this would be a catalyst to monitor,' the brokerage firm said. 'BDL's earnings before interest, taxes, depreciation, and amortization (EBITDA) margins are likely to be in the range of 16-18 per cent during FY26-27E as missile systems are largely indigenized. Revenue CAGR may grow by 30 per cent plus during FY25-27E (our est. CAGR of 39 per cent), driven by strong execution of ₹22,100 crore order book as on March 2025. The recent conflict highlighted product quality and combat mettle of BDL's product portfolio and would open various export opportunities,' Elara Capital said in the company update. Meanwhile, BDL in its FY24 annual report said that slowdown in the economic activities and lower defence budget by Government of India (GoI) could adversely impact the company's business. Higher dependency on single customer i.e. Ministry of Defence (MoD), cancellation of orders can weaken the order book and future revenue and opening up of the Defence sector are some threats for the company.
Economic Times
11-07-2025
- Business
- Economic Times
Defence stocks decline as investors reassess valuations amid profit booking
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Defence stocks dropped on Thursday as investors reassessed their stretched valuations after the recent Nifty India Defence Index shed 2% while the benchmark Nifty closed 0.5% lower on Thursday. Out of 18 stocks on the index, 16 declined and two advanced. Bharat Dynamics dropped 4.8% to ₹1,893, leading the Defence Index laggards, after brokerage Motilal Oswal initiated coverage on the stock with a 'neutral' rating and a target price of ₹1,900, which implied a downside of 4.3% over Wednesday's closing price of ₹1,985."We like the business model of BDL and its ability to scale up its revenues and order book in the current scenario; however, with fair valuations, we would look for lower price points to enter the stock," said analysts at Motilal Industries dropped 3.3% and Zen Technologies shed 2.9%. Data Patterns, Astra Microwave and Garden Reach fell over 2.5%. Hindustan Aeronautics declined 1.9% while BEML and Paras Defence and Space Technologies shed 1.4% each."The fall in defence stocks today was largely due to profit booking and easing of geopolitical tensions ," said Pranay Aggarwal, director and CEO, Stoxkart. "Given the strong rally in the stocks, the corrections were bound to happen."In the past three months, the Nifty India Defence Index jumped 42.2% while the Nifty gained 13.2%, as aggravated geopolitical tensions raised expectations of higher defence spending. The rebound revived concerns over rich valuations, which had eased in April following the stock price declines since the end of September."The correction was due to overvaluation in the defence stocks as the sector is trading at around 60 times price to earnings, which is significantly higher than the historical average," said Ashwini Shami, EVP & portfolio manager at OmniScience of their stock outlook will depend on the execution of existing orders by defence companies, as valuations leave little margin for error.'The growth in the defence companies is already priced in the stocks; so unless the companies continue to deliver 18- 20% growth, sharp declines are likely,' said Shami.'Further falls cannot be ruled out due to premium valuations.' Fund managers are counting on continued defence spending to keep the share valuations at elevated levels. 'Some of the companies can witness 70-80% growth in order inflows, which is expected to justify the valuations especially given the significant export opportunities in the next three to five years,' said Bhalchandra Shinde, associate fund manager, Motilal Oswal recommends a buy-on-dip strategy for defence stocks. 'Stocks are likely to remain sideways for rest of year since there are no major events in July to December period for sector and most orders are secured between January to March,' said Shinde.
Time of India
11-07-2025
- Business
- Time of India
Defence stocks decline as investors reassess valuations amid profit booking
Mumbai: Defence stocks dropped on Thursday as investors reassessed their stretched valuations after the recent rebound. The Nifty India Defence Index shed 2% while the benchmark Nifty closed 0.5% lower on Thursday. Out of 18 stocks on the index, 16 declined and two advanced. Bharat Dynamics dropped 4.8% to ₹1,893, leading the Defence Index laggards, after brokerage Motilal Oswal initiated coverage on the stock with a 'neutral' rating and a target price of ₹1,900, which implied a downside of 4.3% over Wednesday's closing price of ₹1,985. "We like the business model of BDL and its ability to scale up its revenues and order book in the current scenario; however, with fair valuations, we would look for lower price points to enter the stock," said analysts at Motilal Oswal. Agencies Solar Industries dropped 3.3% and Zen Technologies shed 2.9%. Data Patterns, Astra Microwave and Garden Reach fell over 2.5%. Hindustan Aeronautics declined 1.9% while BEML and Paras Defence and Space Technologies shed 1.4% each. "The fall in defence stocks today was largely due to profit booking and easing of geopolitical tensions ," said Pranay Aggarwal, director and CEO, Stoxkart. "Given the strong rally in the stocks, the corrections were bound to happen." In the past three months, the Nifty India Defence Index jumped 42.2% while the Nifty gained 13.2%, as aggravated geopolitical tensions raised expectations of higher defence spending. The rebound revived concerns over rich valuations, which had eased in April following the stock price declines since the end of September. "The correction was due to overvaluation in the defence stocks as the sector is trading at around 60 times price to earnings, which is significantly higher than the historical average," said Ashwini Shami, EVP & portfolio manager at OmniScience Capital.
