Better execution may drive gains for Bharat Dynamics

Brokerages upbeat on medium- to long-term prospects of stock

- RAM PRASAD SAHU

Defence major Bharat Dynamics (BDL), a public sector undertaking (PSU), reported a mixed performance in the fourth quarter of 2024-25 (Q4FY25). While revenues doubled over the year-ago quarter, profitability was sub-par. The company's order inflows and backlog are healthy, which offers revenue visibility.

However, brokerages believe the pace of execution is crucial for the company, which makes guided missile and allied equipment for the Indian armed forces. Analysts are positive on the medium- to long-term prospects of the stock, which is up 93 per cent in just three months. However, the near-term upside might be limited given that the stock at 54 times is trading at a premium to its five-year average of 34 times.

For Q4FY25, revenues saw a 108 per cent jump year-on-year (Y-o-Y) and 112 per cent jump sequentially to ₹1,770 crore. On an annual basis (FY25), revenues were up 42 per cent to ₹3,345 crore. Growth on the top line front was driven by better execution.