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Target: ₹1,560
CMP: ₹1,369.85
Bharat Dynamics Ltd (BDL) reported revenue for the quarter grew by about 7 per cent y-o-y to ₹850 crore ( vs our est. ₹890 crore) and ₹790 crore in Q4FY23, topline was slightly below our expectations. EBIDTA came at ₹310 crore (+ 73% y-o-y/ 166 per cent q-o-q) (vs Est. ₹210 crore), Margin improved significantly at 37.3 per cent (improved 1427bps y-o-y/1737 per cent q-o-q) (vs Est. of 24.3 per cent).
Improvement in margin is associated with cost control measures and RM cost recovery. APAT came at ₹280 crore (+ 89 per cent y-o-y/114 per cent q-o-q) (vs est. ₹210 crore) and led by higher other income. The Board of Directors recommends a final dividend of ₹0.85 per share.
We have a positive outlook on BDL, as it is catering the strategic needs of the MoD & Indian defence forces, supported by Sole supplier of offensive, as well as defensive systems domestically; upcoming big-ticket projects which is expected to materialise from FY25; increasing exports opportunity (talks are under way with 4-5 friendly countries); diversified product portfolio across armed forces; and the company’s humongous order book, which stood at ₹19,500 crore as on April 1, 2024.
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