Bharat Dynamics Q1 Results Review – Nagging Supply Chain Issues Dog Down Performance: ICICI Securities

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ICICI Securities Report

Bharat Dynamics Ltd. Q1 FY25 Ebitda was below estimates. Key points:

  1. Q1 FY25 performance took a hit owing to supply chain issues amid the ongoing Russia-Ukraine war and conflicts in Middle-East region.

  2. Incurred Ebitda losses of Rs 523 million due to unabsorbed fixed cost.

  3. Net profits shrank to Rs 72 million, bogged down by the Ebitda dip and other income receding.

  4. Indian Air Force has given clearance to Defence Research and Development Organisationand Bharat Dynamicsto produce 200 Astra air-to-air missiles for its Su-3O and LCA Tejas fighter aircraft.

Management has guided for revenue growth of 30–35% for FY25 and margins in the range of 15–20%. At current market price, we believe that risk-reward appears favorable.

We upgrade Bharat Dynamics to 'Buy' (earlier Add) at an unchanged target price of Rs 1,745 (discounted cash flow -based methodology).

Click on the attachment to read the full report:

Zydus Lifesciences Q1 Results Review – Earnings Led By Multiple One-Offs: ICICI Securities

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