Defence Stock BDL Surges: Brokerage Hikes Target to ₹2000, Sees 32% Upside!

Author

Simar Singh | Whalesbook News Team

Detailed Coverage:

Motilal Oswal has reiterated its "buy" recommendation for defence equipment manufacturer Bharat Dynamics Ltd. (BDL), significantly increasing its price target to ₹2,000 from ₹1,900. This revised target indicates a potential upside of 32% from its recent closing price. The upgrade comes after BDL reported strong September quarter financial results, attributed to an improved execution pace as supply chain disruptions ease. While project mix slightly impacted margins, the company announced a substantial ₹2,000 crore order for Invar anti-tank missiles, a development Motilal Oswal believes will benefit from emergency procurement policies.

The brokerage firm forecasts impressive financial growth for BDL, projecting a Compounded Annual Growth Rate (CAGR) of 35% for revenue, 64% for EBITDA, and 51% for Net Profit between fiscal years 2025 and 2028. Motilal Oswal anticipates continued strong execution driven by a healthy order book and expects margins to improve as operating leverage becomes more significant. Choice Broking also issued a "buy" rating with a price target of ₹1,965. Currently, out of 12 analysts covering BDL, eight recommend "buy," three suggest "sell," and one has a "hold" rating. The stock, which closed 1.1% lower at ₹1,516 on Thursday, has already gained 34% year-to-date in 2025.

Impact This news is highly significant for investors in Bharat Dynamics Ltd. and the broader Indian defence sector. Brokerage upgrades, increased price targets, strong quarterly results, and new order wins typically boost investor confidence, potentially leading to increased demand for the stock and a positive impact on its share price. The positive outlook from multiple brokerages suggests a favourable environment for the company's future growth, reinforcing its position in the market. Rating: 9/10

Difficult Terms: EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation. This metric measures a company's operating performance before considering financing costs, taxes, and non-cash expenses like depreciation and amortisation. CAGR: Compounded Annual Growth Rate. This is a measure of the mean annual growth rate of an investment over a specified period of time longer than one year.