Miniratna defence stock engaged in manufacturing guided missiles and defence equipment declined nearly 19 percent to Rs.1,160.05 per share following decrease in net profits of 98 percent quarter-on-quarter.
Price Movement
In Monday’s trading session, the share price of Bharat Dynamics Ltd. dropped nearly 19 percent, falling from its previous close of Rs.1,433.6 per share to an intraday low of Rs.1,160.05 apiece.
Financials
The significant decline in Bharat Dynamics Ltd.’s stock price is attributed to deteriorating financials, marked by drops in net profits and revenue.
With a market capitalization of Rs.48,914 crores, the company reported standalone revenue from operations of Rs.187.77 crores for the quarter ending June 2024. This shows a sharp 77.8 percent decline from Rs.848.56 crores in the previous quarter and a 36.5 percent drop from Rs.295.69 crores in Q1 FY24.
Profit After Tax (PAT) plummeted 97.5 percent quarter-on-quarter, falling to Rs.7.21 crores in Q1 FY25 from Rs.288.77 crores in the March 2024 quarter and down 82.75 percent from Rs.41.81 crores in Q1 FY24.
The company’s financial performance has been disappointing, with the stock trading at 13.6 times its book value. Notably, earnings for the quarter include Rs.80 crores from other income, representing over 40 percent of the total earnings.
Order Book
As of March 31, 2024, the total order book of Bharat Dynamics Ltd. stands at Rs.19,434 crores, with approximately Rs.20,000 crores worth of orders in the pipeline for the next 2-3 years.
Stock Split and Dividend
Recently, the shareholders of the company approved the subdivision of one equity share with a face value of Rs.10 each into two equity shares with a face value of Rs.5 each. The record date for this subdivision was May 24, 2024.
The Board of Directors also recommended a final dividend of Rs.0.85 per equity share with a face value of Rs.5 each for the financial year 2023-24.
Shareholding Pattern
According to the June 2024 shareholding pattern, the President of India, as the promoter, holds a majority stake of 74.93 percent in Bharat Dynamics Ltd. Foreign Institutional Investors and Domestic Institutional Investors hold 3.06 percent and 9.52 percent, respectively. Retail investors, including individual investors and others, hold 12.49 percent of the company.
Company Profile
Bharat Dynamics Limited (BDL) is a Government of India Enterprise under the Ministry of Defence, specialising in the manufacturing of missiles and allied defence equipment. The company primarily supplies its products and services to the Indian Armed Forces and the Government of India.
Written by – Siddesh S Raskar
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