Bharat Dynamics share price target raised 36% by Nuvama - These are the key triggers

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HomeMarket NewsBharat Dynamics share price target raised 36% by Nuvama - These are the key triggers

According to Nuvama, Bharat Dynamics is well-positioned to achieve a revenue growth of over 60% compounded annually over FY25–27.

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By Meghna Sen   May 28, 2025, 11:56:36 AM IST (Published)

Bharat Dynamics share price target raised 36% by Nuvama - These are the key triggers

Shares of state-run defence company Bharat Dynamics Ltd. fell as much as 6% on Wednesday, May 28, after the company's March quarter results that were reported after market hours on Tuesday.

For the fourth quarter, revenue for Bharat Dynamics more than doubled to ₹1,777 crore from ₹854 crore during the same quarter last year.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell 5.5% to ₹299 crore from ₹316 crore during the year-ago period. EBITDA margin saw a contraction year-on-year to 16.83% from 37.04%. Net profit also fell by 5.5% from last year.

Despite a mixed performance in Q4, brokerage firm Nuvama Institutional Equities has maintained a 'Buy' rating on Bharat Dynamics. The brokerage has also raised its price target by 36% to ₹2,250 from ₹1,650 earlier.

The brokerage wrote in its note that Bharat Dynamics posted a strong topline-driven Q4FY25 performance, with momentum expected to continue into the next fiscal year. Order inflows for FY25 stood at ₹6,700 crore, pushing the order backlog to ₹22,800 crore, providing strong revenue visibility over the next three–four years.

According to the brokerage, BDL is well positioned to achieve a revenue CAGR of over 60% during FY25–27E.

While the company had earlier faced supply chain disruptions due to its reliance on war-affected regions such as Russia and Israel, Nuvama believes these challenges have now eased.

Looking ahead, the brokerage identified sustained or improved execution momentum and an improvement in operating profit margins (OPM) as key triggers for the company.

Shares of Bharat Dynamics are trading with losses of 2.47% at 1,911.45. The stock has risen nearly 70% so far in 2025.

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