Defense PSU stock, Bharat Dynamics shares down by 45%, What to expect now

The Shares of Bharat Dynamics Ltd (BDL) have fallen 45% from their 52-week high level, but analysts are mixed over the defense PSU stock's return prospects. Affected by the Russia-Ukraine war and conflicts in the Middle East region, shares continued to affect supply chain issues, leading to delays in the receipt of inputs, which impacted BDL's performance in the September quarter. The company expects most of these issues to be resolved by H2FY25.

On Friday, shares of BDL closed at Rs 989.80, up 1.04%. The scrip is down 44.84% from its 52-week high of Rs 1,794.70 hit on July 5. This brokerage has revised its FY26 projections for revenue, EBITDA, and PAT by 26%, 11%, and 10%, respectively.

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Wall Street analysts forecast BDL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BDL is Rs 1 327.7 with a low forecast of Rs 878.7 and a high forecast of Rs 1 832.25. For the past seven quarters, supply chain issues related to certain electronic components have consistently hampered Bharat Dynamics' performance. The company's share price is falling due to these disappointing financial results, as investors are concerned about its ability to navigate these challenges.

Bharat Dynamics Ltd. has declared 13 dividends since Sept. 18, 2018. In the past 12 months, Bharat Dynamics Ltd. has declared an equity dividend amounting to Rs 9.70 per share.

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