Buy Bharat Dynamics, target price Rs 1175: ICICI Securities

ICICI Securities has buy call on Bharat Dynamics with a target price of Rs 1175. The current market price of Bharat Dynamics is Rs 985.3.

Bharat Dynamics, incorporated in the year 1970, is a Mid Cap company (having a market cap of Rs 18104.52 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 31-12-2022, the company has reported a Standalone Total Income of Rs 498.02 Crore, down -14.10 % from last quarter Total Income of Rs 579.79 Crore and down -40.61 % from last year same quarter Total Income of Rs 838.56 Crore. Company has reported net profit after tax of Rs 83.74 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
In case of BDL, taking cognisance of improved earnings outlook, the brokerage raises the TP toRs1,175 (earlier: Rs955) on DCF-based valuation. Also, the brokerage has upgraded BDL stock to BUY(earlier Add).

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.