Bharat Dynamics Share Price Soars with Strong Order Pipeline
๐ The December quarter results season has come to an end, and most companies have reported better-than-expected results for the October-December quarter. Following this decision, brokerage house ICICI Direct has recommended buying shares of government defense company Bharat Dynamics, which could potentially yield investors an 18% long-term return.
๐ ICICI Direct stated in their report that Bharat Dynamics has a strong order pipeline and is a key player in the country’s defense PSU sector. The company is involved in the manufacturing of missiles, anti-tank guided missiles, air-to-air missiles, underwater weapons, launchers, and take-off equipment.
๐ฐ The company has seen revenue and net profit increase at CAGR rates of 14.1% and 16.9% respectively. It is estimated to receive a surplus of Rs. 20,000 crores from these orders.
๐ On Tuesday (February 20, 2024), the share was trading at Rs. 1,745, down 1.04%. ICICI Direct believes the company still has a surplus of Rs. 20,000 crores and a large order book, including various types of missiles such as Akash NG, Quick Reaction, and Vertical Launch Short Range, and ATGM.
๐ With a strong business outlook, ICICI Direct has advised investing in Bharat Dynamics at a target price of Rs. 2010 per share, with the potential to earn an 18% return.
๐ The stock’s 52-week high is Rs. 1,937.95 and the low is Rs. 804.95, with a market capitalization of Rs. 31,333.76 crores. Bharat Dynamics has given a 90% return in one year, 55% in three months, and 50% in six months, making it a multi-bagger stock with a 400% return in the last three years.
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