ICICI Securities research report on Bharat Dynamics
Bharat Dynamics (BDL) reported loss at the EBITDA level in Q1FY24. Key points: 1) revenue was down 57% YoY as the quarter did not have certain deadline-specific orders it had last year ; 2) fixed costs remained broadly stable; 3) other income surged on the back of advances (mainly for Akash 3rd and 4th regiments); and 4) orderbook as of 30th Jun’23 was at INR 202.2bn, implying orderbook/revenue (ttm) of 9.7x. Going ahead, we expect execution to pick pace. Management mentioned that the residual execution from FY23 is likely to be done by Q2FY24-end.
Outlook
Hence, we don’t see risk to our FY24E revenue estimate of INR32bn. Maintain BUY with an unchanged target price of INR 1,325 based on the DCF methodology.
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