Nuvama Institutional Equities has maintained a Buy rating on Bharat Dynamics Limited (BDL) and raised its target price to ₹2,250 from ₹1,650, citing strong revenue growth, a healthy order backlog, and sustained visibility for the next few years.
The brokerage highlighted Bharat Dynamics’ impressive performance in Q4FY25, where the company posted a 108% year-on-year increase in top line, signaling continued operational momentum into FY26.
BDL reported FY25 order inflows of approximately ₹67 billion, pushing its total order backlog to ₹228 billion — nearly seven times its FY25 revenue. Nuvama stated that this robust pipeline provides strong revenue visibility for the next 3–4 years.
Looking ahead, Nuvama is baking in around 60% revenue CAGR between FY25 and FY27, backed by operating profit margins of 22–23%. The forecast is supported by backward integration initiatives and relief from supply chain constraints, especially in components like chips and warheads.
The brokerage has also revised its FY27 earnings per share (EPS) estimate by 6% and is now assigning a valuation multiple of 45x P/E (up from 35x earlier) on the projected FY27E EPS of ₹50.1.
Disclaimer: The views and recommendations expressed above are those of the brokerage firm. Business Upturn does not endorse or offer any investment advice.