Bharat Dynamics Ltd.
NSE: BDLBharat Dynamics Ltd.: A 30-second snapshot
Bharat Dynamics Ltd. (BDL), a defence PSU focused on guided missiles and torpedoes, trades at Rs 1,360 — 10.8% below its level 12 months ago and 34.9% off its 52-week high. The trailing PE of 85.7x stands near the top of its Infrastructure peer group despite 5-year revenue and earnings contraction of -31.9% and -50.4% respectively, with the forward PE at 48.4x on analyst projections of a sharp earnings recovery.
P/E
85.7
Forward P/E
48.4
ROE
—
Debt / Equity
0.03
Profit Margin
+15.5%
Div. Yield
+0.4%
5Y ROE > 15%
2/5
5Y FCF > 0
3/5
Quality
40/100
News
8 headlines · 7 positive · 0 negative
Exclusive: BDL, BEL eye export opportunity in Project Kusha; 7-8 countries show interest - Zee Business
Zee Business
BDL delivers heavy weight torpedo to NSTL - The New Indian Express
The New Indian Express
BDL Delivers India's First Indigenous Production-Grade Heavyweight Torpedo - The Globe and Mail
The Globe and Mail
BDL delivers India's first indigenous Wire Guided Heavy Weight Torpedo - Telangana Today
Telangana Today
Bharat Dynamics delivers India's first indigenous production grade Wire Guided Heavy Weight Torpedo - Business Standard
Business Standard
Recent context
- ·BDL delivered India's first indigenous production-grade Wire Guided Heavyweight Torpedo to NSTL in April 2026, a milestone cited across Business Standard, The New Indian Express, and international outlets — marking a transition from development to serial production capability.
- ·BDL and BEL are reported (Zee Business, May 2026) to be eyeing export opportunities in Project Kusha, with 7–8 countries expressing interest — introducing a potential revenue stream outside the domestic single-customer order book.
- ·Despite 7 of 8 recent news items carrying positive sentiment, the stock has returned -10.8% over 12 months and sits 34.9% below its 52-week high, indicating that the positive operational news flow has not been reflected in price performance over this window.
Strengths
- +Debt is negligible at D/E of 0.029, keeping the balance sheet low-risk relative to Infrastructure peers who typically carry meaningfully higher leverage.
- +BDL delivered India's first indigenous production-grade Wire Guided Heavyweight Torpedo in April 2026, with 7–8 countries reported to be expressing export interest in Project Kusha — expanding the addressable market beyond the domestic Ministry of Defence order book.
- +Profit margin of 15.5% is positive and FCF was positive in 3 of the available fiscal years, confirming the company is not burning cash despite the multi-year revenue decline.
- +The forward PE of 48.4x represents a 43.6% compression from the trailing PE of 85.7x, reflecting analyst projections of a meaningful earnings step-up — the widest trailing-to-forward multiple gap in the peer group.
Weaknesses
- −5-year revenue growth of -31.9% and earnings growth of -50.4% are sustained multi-year contractions, not single-quarter anomalies; the consistency score of 47 and only 2 years of ROE above 15% confirm weak capital efficiency across the measurement window.
- −Quality score of 20 out of 100 places BDL last (6th of 6) among Infrastructure peers (peer range 24–57); the closest defence peer BEL scores 57.
- −The stock trades 34.9% below its 52-week high and below the 200-DMA (Rs 1,441 vs current Rs 1,360), with a 12-month price return of -10.8%.
- −Analyst rating mean value is null despite 12 analysts in coverage, limiting the ability to assess sell-side direction or conviction on this name.
Open questions
- ?Does the sharp gap between the trailing PE (85.7x) and forward PE (48.4x) reflect a credible, order-book-backed earnings ramp, or does it depend on government capex allocations that could be deferred?
- ?Is the multi-year revenue decline of -31.9% primarily a function of lumpy government procurement cycles, or does it indicate structural issues with order inflows, capacity, or product competitiveness?
- ?How does BDL's quality score of 20 compare to its own historical range, and what business-level changes would be required to close the gap with BEL's score of 57?
- ?If the export pipeline for Project Kusha materialises across 7–8 countries, what portion of BDL's revenue could realistically shift from domestic single-customer dependency to a diversified international order book?
Peer comparison: Infrastructure
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BDL | Bharat Dynamics Ltd.You're viewing | 85.7 | — | 20 |
| Industry avg | across 5 peers | 70.1 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 52.4 | — | 57 |
| ABB | ABB India Ltd. | 87.9 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 110.0 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.8 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.4 | — | 24 |
Technical state
Current price
₹1,360.30
SMA 50
₹1,317.92
SMA 200
₹1,441.49
RSI (14)
49.5 (neutral)
From 52w high
-34.9%
1Y return
-10.8%
3M return
+4.4%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -50.4% and 5-year revenue growth of -31.9% reflect a sustained multi-year contraction in both top-line and bottom-line across the measurement window; FCF was positive in only 3 of the available years and ROE exceeded 15% in only 2 years, indicating weak and inconsistent capital efficiency.
- highQuality score of 20 out of 100 ranks BDL 6th of 6 peers in the Infrastructure sector — the lowest in the entire peer set — against a peer range of 24–57.
- mediumTrailing PE of 85.7x is the second-highest in the peer group (peer range: L&T 33.8x to CGPOWER 110.0x) despite a 5-year earnings CAGR that is deeply negative, implying the market prices in a material forward recovery not yet visible in historical numbers. Forward PE of 48.4x suggests analysts project a significant earnings uplift.
- mediumStock is down 10.8% over 12 months and sits 34.9% below its 52-week high; it trades below the 200-DMA (SMA200 Rs 1,441 vs current Rs 1,360) though above the 50-DMA (Rs 1,318). RSI of 49.5 is neutral.
Cross-section contradictions
- 5-year revenue and earnings growth are deeply negative (-31.9% and -50.4% respectively) yet the trailing PE of 85.7x is among the highest in the peer group — the market embeds a substantial recovery assumption not visible in the historical growth record.
- News flow is predominantly positive (7 of 8 articles) citing indigenous torpedo delivery milestones and export interest in Project Kusha, while the 12-month price return is -10.8% — positive operational news has not been accompanied by price recovery over the past year.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days