Bharat Dynamics Stock Surges 4% on Positive Outlook for Order Inflow from FY25

15 Jun 2023 , 02:05 PM

Bharat Dynamics Ltd (BDL) witnessed a significant rise in its share price on June 15, fueled by optimism surrounding an expected improvement in order inflow starting from FY25. 

At the time of writing, the defense company’s stock was trading at Rs 1,139.60, reflecting a 3.05 % increase. As per data, over the past three months, the stock has recorded a notable 27 % growth.

BDL is anticipating orders for various defense systems in the coming years. In FY26, the company expects orders for QRSAM (Quick Reaction Surface-to-Air Missile), HELINA ATGM (Helicopter-Launched Nag Anti-Tank Guided Missile), and NAG ATGM (Nag Anti-Tank Guided Missile). Additionally, in collaboration with DRDO (Defense Research and Development Organization), BDL foresees orders for Akash NG, VLRSAM (Very Long Range Surface-to-Air Missile), and MPATGM (Man-Portable Anti-Tank Guided Missile) in FY27.

The company is actively engaged with the Indian Air Force to finalize a contract for the procurement of a domestically developed smart anti-airfield weapon. Two different configurations of the weapon, known as SAAW (Smart Anti-Airfield Weapon), have undergone successful tests conducted by DRDO. BDL expects to receive the order for this weapon system in FY27.

BDL’s management has set a target revenue of Rs 3,200 crore for FY24, accompanied by an estimated EBITDA margin ranging from 20 to 23 percent. These targets indicate the company’s ambition to achieve strong financial performance in the upcoming fiscal year.

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