Bharat Dynamics is one of the PSU company which is engaged in the manufacturing of guided missiles & allied defence equipment
Company Overview
- Bharat Dynamics (BDL), is a Government of India Enterprise.
- It was s nominated as a Mini- Ratna – Category – I Company by the Government of India in 2000.
- It produced India’s first state-of-the-art Surface-to-Surface Missile Prithvi.
- All missiles – Prithvi, Akash, Agni have been successfully inducted.
- Company has three manufacturing units at Hyderabad, Bhanu (Telangana State) & Visakhapatnam in Andhra Pradesh
5 Years Returns
Bharat Dynamics 684% returns in 5 years
- In last 5 years, Bharat Dynamics has generated returns of 684%
- In short, 1 Lakh invested in 2019 would have become 7.84 Lakhs 2024
Products Offered
It is the sole manufacturer of Missiles and Torpedoes and Weapon System integrator for Armed Forces. It also designed and developed CounterMeasure Dispensing System (CMDS) for the Armed Forces.
The company manufactures following missiles
- Anti Tank Guided Missile (ATGM)
- Surface to Air Missile Weapon Systems
- Air-to-Air Missile weapon System
- Under water weapon systems and associated equipment
Revenue Mix
- Total Order Book As on 31 Jan 2024 INR 20,070 Cr
- Export Order Position as on 31 Jan 2024 : INR 2580 Cr Approx
Location Wise Breakup
Customer Wise Breakup
Key Ratios
| Market Cap | ₹ 37,932 Cr. |
| Current Price | ₹ 2,070 |
| High/Low | ₹ 2,098 / 900 |
| Stock PE | 79.6 |
| Industry PE | 69.5 |
| ROCE | 15.6 % |
| ROE | 11.3 % |
| Dividend Yield | -10.2 |
| Debt To Equity | 0.45% |
Shareholding Pattern
Change In Shareholding Pattern
| Jun-21 | Mar-24 | Change |
| Promoters + | 74.93% | 74.93% | 0.00% |
| FIIs + | 0.41% | 2.95% | 2.54% |
| DIIs + | 17.92% | 12.39% | -5.53% |
| Government + | 0.00% | 0.00% | 0.00% |
| Public + | 6.75% | 9.72% | 2.97% |
- Promoters: There hasn’t been any change in promoter holdings from June 2021 to March 2024. They still hold 74.93% of the total ownership.
- Foreign Institutional Investors (FIIs): Their ownership has increased from 0.41% in June 2021 to 2.95% in March 2024, marking a significant rise of 2.54%.
- Domestic Institutional Investors (DIIs): Contrary to FIIs, DIIs have decreased their ownership from 17.92% in June 2021 to 12.39% in March 2024, showing a decrease of 5.53%.
- Government: There’s no change in government ownership, remaining at 0.00%.
- Public: Public ownership has increased from 6.75% in June 2021 to 9.72% in March 2024, indicating a rise of 2.97%.
Financial Trend
Revenue
- Revenue in 2020- 3105 Crore
- Revenue in 2024- 2313 Crore
- Change in Revenue – Decrease of 25.45 %
Net Profit
- Net Profit in 2020- 535 Crore
- Net Profit in 2024- 477 Crore
- Change in Revenue – Decrease of 10.84 %
Company valuation
Share Price Returns
- Bharat Dynamics launched its IPO on March 2018, since then company has given 430% returns (In 6 Years)
Median Price to Earning Ratio
- Current PE- 79.6 (Blue Line)
- Median PE (5 years) – 22.9 (Red Line)
- As the Current PE is greater than the Median PE, we can say that Bharat Dynamics is overvalued as per the current market scenario
What Should Investors Do ?
- As the Current PE is higher than the Median PE, company is overvalued
- In last 5 years Revenue & Net Profit is also declining as the company is solely depended on the Government of India which contributes to 66% of the revenue.
- In short , Indian Government controls the the Revenue contribution share in the Bharat Dynamics
- There has been 13% increase in the defence budget in 2024 as compared to 2023 but Bharat Dynamics is lagging somewhere behind it can be seen from the revenue growth.
- Despite there is negative revenue growth in last 5 years but the share price has shoot up by almost 700%, we can conclude that this public sector unit company has rallied with other PSU sector companies.
- Indian retail investors have shown great interest in such PSU companies & retail investors shareholding have been increased by almost 3% in last 5 years.
- Being the PSU company, Indian Government controls the majority of the stake so investing in such companies will be a tough decision
- If the Government change some of the policies it will definitely impact Bharat Dynamics
- This may not be the right time to invest in such companies as Bharat Dynamics is overvalued zone.
Check Out this – Best Defence sector stock- DCX Systems India
Disclaimer
- Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
- This article is a complete guide about Bharat Dynamics Limited.
- These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
- Also, We have talked in detail about the share’s future prospects and growth potential.
- Hopefully, this information will help you in your further investment.
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