Buy Bharat Dynamics; target of Rs 1200: ICICI Direct

ICICI Direct's research report on Bharat Dynamics

Bharat Dynamics (BDL) is one of the leading defence PSUs in India engaged in the manufacture of surface to air missiles (SAMs), anti-tank guided missiles (ATGMs), air to air missiles (AAMs), underwater weapons, launchers, countermeasures and test equipment. During FY22, BDL reported revenue of Rs 2817 crore, which increased 47.2% YoY. EBITDA and PAT increased 110.6% and 93.9% YoY in FY22 to Rs 726 crore and Rs 500 crore, respectively • Order book was at Rs 12000 crore as of September 2022.

Outlook

We maintain our BUY rating on the stock. We value BDL at Rs 1200 on 28x P/E on FY24E EPS basis.