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Defense Stock, Bharat Dynamics shows 3% decline after three consecutive gains, total order adds to Rs 3,110 crore

by Psu Connect
Date: 21-01-25

It is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive long-term trend despite the recent downturn.

Defense Stock, Bharat Dynamics shows 3 decline after three consecutive gains, total order adds to Rs 3,110 crore

Defense sector stock, Bharat Dynamics, experienced a decline of 3.11% on January 21, 2025. The stock's performance underperformed the sector by 1.32%, marking a notable trend reversal after three consecutive days of gains. During the trading session, the stock reached an intraday low of Rs 1280.9, reflecting a decrease of 3.64%.

It is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive long-term trend despite the recent downturn. Over the past month, the stock has shown a performance increase of 3.63%, in contrast with the Sensex, which has declined by 2.19%.

On January 16, 2025, BDL announced that the Ministry of Defense (MoD) has signed a contract with the company for the supply of Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy at a cost of approximately Rs 2,960 crore.

The MRSAM system is a standard fit, onboard multiple Indian Naval Ships and is planned to be fitted on the majority of the future platforms planned for acquisition. The contract marks a critical milestone in the ongoing efforts to bolster India’s defense capabilities and indigenise advanced military technology.

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Now, the total order intake for the company during YTDFY25 is approximately Rs 3,110 crore (vs Rs 1,793 crore in FY24). Order backlog, estimated to be at around Rs 21,000 crore (9.5x TTM revenue), gives a healthy revenue visibility. Order pipeline also remains strong in missiles, torpedoes, sonobuoys, countermeasure dispensing systems, etc.

Orders execution will be the key thing to watch out for in the coming period as the execution has been impacted in the last two quarters (H1 revenue was down 19% YoY) due to supply chain issues, ICICI Securities said.

BDL is engaged in the manufacturing of missiles and allied defense equipment. The company provides a majority of its goods and services to the Indian Armed forces and the Government of India.

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