Add Bharat Dynamics, target price Rs 960: ICICI Securities

ICICI Securities has add call on Bharat Dynamics with a target price of Rs 960. The current market price of Bharat Dynamics is Rs 926.3.

Bharat Dynamics, incorporated in the year 1970, is a Mid Cap company (having a market cap of Rs 17087.31 Crore) operating in Defence sector.

Bharat Dynamics key Products/Revenue Segments include Engineering Goods, Spares And Others, Other Operating Revenue, Job Work, Sale of services, Miscellaneous and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Standalone Total Income of Rs 579.79 Crore, down -20.75 % from last quarter Total Income of Rs 731.56 Crore and up 10.63 % from last year same quarter Total Income of Rs 524.08 Crore. Company has reported net profit after tax of Rs 75.82 Crore in latest quarter.

The company’s top management includes Mr.Siddharth Mishra, Mr.Chandraker Bharti, Mr.Rajendra Kumar Shekhawat, Prof. (Dr)Sangamitra Mishra, Dr.Pawan Sthapak, Mr.Nandakumar Subbaraman, Mr.Sunil Chintaman Mone, Mr.N Srinivasalu, Mr.N P Diwakar, Mr.P Radhakrishna, Dr.BHVS Narayana Murthy. Company has G Natesan & Co. as its auditors. As on 31-12-2022, the company has a total of 18 Crore shares outstanding.

Investment Rationale
The brokerage believes successful testing of QRSAMs opens up Rs 200bn opportunity for the company. However, delay in ordering of 3rd and 4th Akash regiment is the main risk for order-book accretion. That said, the recently issued AONs are focused on missile systems, hence, ICICI Securities' lowers its growth estimates FY26 onwards marginally to 10% (earlier 12.5%).

Promoter/FII Holdings
Promoters held 74.93 per cent stake in the company as of 31-Dec-2022, while FIIs owned 3.24 per cent, DIIs 12.39 per cent.