Buy Bharat Dynamics, target price Rs 1022: HDFC Securities
Bharat Dynamics Ltd. 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.
By ETMarkets.com |
BCCL - Non Copyright
HDFC Securities has buy call on Bharat Dynamics with a target price of Rs 1022. The current market price of Bharat Dynamics Ltd. is Rs 915. Bharat Dynamics Ltd., incorporated in the year 1970, is a Mid Cap company (having a market cap of Rs 16351.44 Crore) operating in Defence sector.
Bharat Dynamics Ltd. 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 30-06-2022, the company reported a Standalone Total Income of Rs 731.56 Crore, down -48.11 % from last quarter Total Income of Rs 1409.77 Crore and up 368.37 % from last year same quarter Total Income of Rs 156.19 Crore. Company reported net profit after tax of Rs 39.86 Crore in latest quarter.
Investment Rationale
BDL intends to leverage its experience to develop new products, such as new-generation SAMs, ATGMs, and heavyweight torpedoes, which would improve its topline. Strong revenue visibility, backed by a robust pipeline, large projects being awarded (Akash and next-gen ATGMs are expected to be awarded soon) and a focus on indigenisation and internal efficiency are likely to fuel earnings growth. It expects revenue/EBITDA/PAT to grow at a CAGR of 26.7%/18.8%/17.7% over FY22-24E.
Promoter/FII Holdings
Promoters held 74.93 per cent stake in the company as of 30-Jun-2022, while FIIs owned 2.4 per cent, DIIs 14.58 per cent.
Bharat Dynamics Ltd. 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 30-06-2022, the company reported a Standalone Total Income of Rs 731.56 Crore, down -48.11 % from last quarter Total Income of Rs 1409.77 Crore and up 368.37 % from last year same quarter Total Income of Rs 156.19 Crore. Company reported net profit after tax of Rs 39.86 Crore in latest quarter.
Investment Rationale
BDL intends to leverage its experience to develop new products, such as new-generation SAMs, ATGMs, and heavyweight torpedoes, which would improve its topline. Strong revenue visibility, backed by a robust pipeline, large projects being awarded (Akash and next-gen ATGMs are expected to be awarded soon) and a focus on indigenisation and internal efficiency are likely to fuel earnings growth. It expects revenue/EBITDA/PAT to grow at a CAGR of 26.7%/18.8%/17.7% over FY22-24E.
Promoter/FII Holdings
Promoters held 74.93 per cent stake in the company as of 30-Jun-2022, while FIIs owned 2.4 per cent, DIIs 14.58 per cent.
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