Bharat Dynamics Limited (BDL), a manufacturer of guided missiles and allied defence equipment showcased the largest-ever display of its products during the Aero India – 2023 show at Bengaluru, following which it entered into ten Memorandum of Understanding (MoUs) with several foreign and Indian companies.
The Miniratna CPSE’s share price shot up 9.34% to reach an intraday high of ₹ 874.85 apiece on the National Stock Exchange (NSE). Its shares were trading at ₹ 871.05 apiece at 12:20 PM on Thursday.
Indian Institute of Technology Madras (IITM), Chennai
Bharat Dynamics will work together with the Institute on the design and development of Propellant grains for various missiles and futuristic weapon systems.
Thales
BDL has entered into an MoU with Thales for setting up manufacturing facilities for Laser Guided Rocket and its major components in India. These rockets will be offered to the Indian Defence forces. With this, BDL will become part of the Thales global supply chain to address the future requirements of export markets.
EDGE Group entity, AL TARIQ, UAE
BDL will jointly produce the all-weather, day/night, long-range precision-guided munition (LR-PGM) kits in India.
Bultexpro Ltd, Bulgaria
BDL has signed an MoU to set up manufacturing facilities for 122mm GRAD BM ER and NON-ER rockets in India under ‘Make in India’ with Transfer of Technology.
Together with Tamil Nadu Industrial Development Corporation Limited (TIDCO), Chennai, BDL will work on new programs with the centre of excellence of TIDCO.
Brokerage firm ICICI Securities has a buy rating on the shares of Bharat Dynamics (BDL) with a target price of ₹ 1010 apiece. This translates to an upside of 15.95% as compared to its share price of ₹ 871.05 apiece.
ICICI Securities in its research report dated February 08, 2023, said that BDL’s order book is at ₹ 11906 crores (3.8x TTM revenues). Moreover, it has ₹ 20,000 crores worth of orders in the pipeline. Bharat Dynamics is making continuous investments in research and development (R&D) and is expanding infrastructure to develop new-generation products. It is expanding its capabilities to enhance market position and competitiveness.
BDL is a small-cap company with a market capitalization of ₹ 14,664 crores. It has a return on equity of 17.49% and an ideal debt-to-equity ratio of 0.00. Its shares were trading at ₹ 31.61 apiece, which is lower than the industry P/E of 37.31, indicating that the stock might be undervalued as compared to its peers, and its share price might increase in the future.
Written by Simran Bafna
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