Buy Bharat Dynamics; target of Rs 1800: Motilal Oswal

Motilal Oswal is bullish on Bharat Dynamics has recommended buy rating on the stock with a target price of Rs 1800 in its research report dated January 31, 2026.

Broker Research

February 02, 2026 / 16:45 IST

Buy

Motilal Oswal's research report on Bharat Dynamics

Bharat Dynamics (BDL)’s 3QFY26 performance was weaker than our expectations. Execution was impacted due to delays in component integration from other vendors, while margin was hit by lower revenue and a higher share of bought-out components for Akash and Astra Mk-1. However, order inflows remained healthy for BDL during 9MFY26 at ~INR54b and the company is expecting additional INR40b-50b worth of orders in 4QFY26. Further, the near-to-medium-term rospects also remains strong. We believe that the higher share of bought-out components will continue to weigh on its overall margins. Hence, we cut our estimates by 21%/17%/14% for FY26/FY27/FY28. We thus expect a revenue/EBITDA/PAT CAGR of 35%/55%/44% over FY25-28 and arrive at a revised TP of INR1,800 (vs. INR2,000 earlier), based on 42x two-year forward earnings. Maintain BUY.

Outlook

The stock currently trades at 69.1x/48.9x/34.3x P/E on FY26/FY27/FY28 estimates. We maintain our BUY rating on the stock with a revised TP to INR1,800 (INR2,000 earlier), based on 42x two-year forward earnings.

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