Bharat Dynamics - Firing On All Cylinders: ICICI Direct Initiates Coverage


Bharat Dynamics Ltd. is one of the leading defence public sector undertakings in India engaged in the manufacture of surface to air missiles, anti-tank guided missiles, air to air missiles, underwater weapons, launchers, countermeasures and test equipment.

Key triggers for future price performance:

  • Increasing capital outlay in defence with indigenisation has been the focus area of the government considering armed forces requirement of faster procurement of modern equipment.

  • Bharat Dynamics’ order book at Rs 13000 crore (4.6 times FY22 revenues) gives strong revenue visibility. Moreover, Rs 22000 crore worth of orders are in the pipeline for the next three to four years gives more comfort on future earnings.

  • Expanding capabilities to enhance market position and competitiveness. Continuous investment in research and development and expanding infrastructure to develop new generation products.

  • Huge opportunity in exports (Akash SAM, ATGMs, Astra, Torpedoes) driven by rising interest from friendly countries and lower cost on high indigenisation levels.


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