Bharat Dynamics Limited: Aerospace & Defence Share Overview

Bharat Dynamics Limited (BDL), headquartered in Hyderabad and often referred to as BDL Hyderabad, is a prominent entity within the Industrial Machinery Manufacturing sector. As a stalwart Public Sector Undertaking (PSU) under the Ministry of Defense, Government of India.

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Jul 04, 2024
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About Company:

BDL plays a crucial role in the nation's defence infrastructure. Specializing in the manufacturing of guided missile systems and related technologies, BDL leverages strategic partnerships with the DRDO and international Original Equipment Manufacturers (OEMs).

BDL's journey began as a dedicated missile manufacturer under the Integrated Guided Missile Development Programme (IGMDP) and has since evolved into a pivotal Weapon System Integrator. Today, BDL stands as a comprehensive solutions provider for the Indian Armed Forces, delivering advanced defence capabilities tailored to meet the country's security needs.

Bharat Dynamics Limited (BDL) has strategically organized its operations into four units across Telangana and Andhra Pradesh. These units are:

  • Hyderabad (Telangana)
  • Bhanur (Telangana)
  • Ibrahimpatnam (Telangana)
  • Vishakhapatnam (Andhra Pradesh)

These units form a robust network that supports BDL's mission to manufacture and supply advanced defence technologies to the Indian Armed Forces (IAF). Recognizing the growing demands and responsibilities, BDL is preparing to establish its fifth unit. This expansion underscores BDL's commitment to enhancing its production capabilities and meeting the evolving defence needs of the nation effectively.

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Credit goes to: screener.in

Manufacturing:

The company specializes in manufacturing a diverse range of defence products, including Anti Tank Guided Missiles (ATGMs), Surface to Air Missile Weapon Systems, Air-to-Air Missile Weapon Systems, underwater weapon systems, and associated equipment. Additionally, it excels in the refurbishment of missiles, serving as the exclusive manufacturer of missiles and torpedoes and acting as a crucial weapon system integrator for the Armed Forces.

In its business areas:

the company offers comprehensive solutions such as Ground Equipment, Launchers, Missiles, Underwater Weapons & Decoys, Airborne Counter Measures, and acts as a key integrator for weapon systems. It also specializes in integrating airborne systems with various platforms and provides expertise in refurbishment services to ensure operational readiness and effectiveness for defence applications.

PROS:

  • The company has successfully reduced its debt burden to a significant extent. 
  • It is now nearly debt-free, reflecting its strong financial management. 
  • Additionally, the company has consistently maintained a robust dividend payout ratio of 35.2%, 
  • showcasing its commitment to delivering value to shareholders.

CONS:

  • The stock is currently valued at 16.5 times its book value, indicating strong investor confidence in its asset base.
  • Despite challenges, the company has navigated a sales growth decline of -5.05% over the past five years with resilience. 
  • Notably, earnings have been bolstered by an additional income of Rs.362 Cr. 
  • However, there has been an observed increase in debtor days from 38.1 to 47.8 days, highlighting a focus area for operational efficiency moving forward.

About BDL Stock:

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The current value of BDL shares is 1633.80 INR. It has strong resistance near 1650 INR. It tried to couple of times to break its resistance. In a daily time frame if it breaks this resistance company will give a new target. 

The current market capitalization is around 59863 Cr. Company increases It’s profit continuously. It provides the dividend as well. The current liabilities are less than its reserves. 

Read More:INOX INDIA one of the Best Fundamental Stock in 2024

 

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