Buy Bharat Dynamics; target of Rs 1900: Motilal Oswal

Motilal Oswal is bullish on Bharat Dynamics recommended buy rating on the stock with a target price of Rs 1900 in its research report dated July 09, 2025.

Broker Research

July 10, 2025 / 14:25 IST

buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Bharat Dynamics

Bharat Dynamics (BDL) is a prominent player in missile technology within the defense sector and has established itself as a leading integrator for various missile platforms. With a focus on developing advanced guided missiles, underwater weapons, and airborne products, BDL currently holds an order book of ~INR227b and a prospect pipeline of INR500b. In recent years, BDL’s revenue has been adversely impacted by supply chain disruptions and difficulties in procuring essential components through imports from Russia and Israel. However, these issues are beginning to resolve, and we anticipate a rebound in revenue growth. Along with this, we also expect company to benefit from upcoming emergency procurement pipeline as well as large orders such as QRSAM.

Outlook

We initiate coverage on the stock with a Neutral rating and a TP of INR1,900 based on 42x Sep’27E P/E. We like the business model of BDL and its ability to scale up its revenues and order book in current scenario, however, with fair valuations, we would look for lower price points to enter the stock.

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