Shares of Bharat Dynamics Ltd (BDL) fell 2% after Motilal Oswal Financial Services initiated coverage with a ‘Neutral’ rating and a price target that suggests a 4% downside. The brokerage acknowledged BDL’s strong fundamentals and growth prospects but flagged current valuations as a concern. As of 9:23 AM, the shares were trading 2.23% lower at Rs 1,941.50.
Motilal Oswal praised BDL’s leadership across missile systems like Akash, Nag, and QRSAM, and highlighted its robust ₹22,700 crore order book and ₹50,000 crore pipeline as key growth drivers. With easing supply chain issues and upcoming defense orders, revenue is expected to grow at a solid 35% CAGR over FY25–28E, while EBITDA and PAT could surge at 64% and 51% CAGRs respectively.
The company’s focus on indigenization and backward integration aligns well with the government’s Atmanirbhar Bharat push, supporting healthy margins of 24–26%. Still, the brokerage noted that at current P/E valuations of 70x FY26E and 38x FY28E, the stock looks fully priced.
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