NSEI:BDL

Stock Analysis Report

Executive Summary

Bharat Dynamics Limited manufactures and sells guided missiles and related defense equipment in India.


Snowflake Analysis

Flawless balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

How has Bharat Dynamics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BDL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

BDL

-2.6%

IN Aerospace & Defense

-3.0%

IN Market


1 Year Return

-34.7%

BDL

-23.7%

IN Aerospace & Defense

-29.2%

IN Market

Return vs Industry: BDL underperformed the Indian Aerospace & Defense industry which returned -23.7% over the past year.

Return vs Market: BDL underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

BDLIndustryMarket
7 Day1.9%-2.6%-3.0%
30 Day-40.9%-20.3%-26.9%
90 Day-38.6%-28.2%-28.5%
1 Year-32.9%-34.7%-20.1%-23.7%-27.7%-29.2%
3 Yearn/a-28.2%-29.9%-15.2%-19.9%
5 Yearn/a-27.1%-29.5%-3.1%-8.1%

Price Volatility Vs. Market

How volatile is Bharat Dynamics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bharat Dynamics undervalued compared to its fair value and its price relative to the market?

9.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BDL (₹184.95) is trading above our estimate of fair value (₹103.93)

Significantly Below Fair Value: BDL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BDL is poor value based on its PE Ratio (9.7x) compared to the Aerospace & Defense industry average (8x).

PE vs Market: BDL is poor value based on its PE Ratio (9.7x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BDL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BDL is good value based on its PB Ratio (1.4x) compared to the IN Aerospace & Defense industry average (1.4x).


Next Steps

Future Growth

How is Bharat Dynamics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.7%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bharat Dynamics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Bharat Dynamics performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BDL has high quality earnings.

Growing Profit Margin: BDL's current net profit margins (13.8%) are lower than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: BDL's earnings have declined by -2.6% per year over the past 5 years.

Accelerating Growth: BDL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BDL had negative earnings growth (-45%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (33.5%).


Return on Equity

High ROE: BDL's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Bharat Dynamics's financial position?


Financial Position Analysis

Short Term Liabilities: BDL's short term assets (₹46.5B) exceed its short term liabilities (₹30.0B).

Long Term Liabilities: BDL's short term assets (₹46.5B) exceed its long term liabilities (₹3.9B).


Debt to Equity History and Analysis

Debt Level: BDL is debt free.

Reducing Debt: BDL had no debt 5 years ago.

Debt Coverage: BDL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BDL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BDL has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BDL's debt is covered by short term assets.


Next Steps

Dividend

What is Bharat Dynamics's current dividend yield, its reliability and sustainability?

3.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BDL's dividend (3.74%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: BDL's dividend (3.74%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BDL has been paying a dividend for less than 10 years.

Growing Dividend: BDL has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.5%), BDL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Siddharth Mishra (56yo)

1

Tenure

₹4,287,312

Compensation

Commodore Siddharth Mishra is a Chairman and Managing Director at Bharat Dynamics Limited since March 1, 2019. Commodore Mishra was commissioned in the Electrical Branch of Indian Navy in the year 1985. Po ...


CEO Compensation Analysis

Compensation vs Market: Siddharth's total compensation ($USD56.88K) is below average for companies of similar size in the Indian market ($USD355.40K).

Compensation vs Earnings: Insufficient data to compare Siddharth's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Siddharth Mishra
Chairman & MD1yr₹4.29mno data
S. Piramanayagam
Director of Finance5.17yrs₹6.50mno data
N. Diwakar
Director of Technical & Whole Time Director1.5yrs₹7.70mno data
N. Nagaraja
Company Secretary & Compliance Officerno data₹1.56mno data
Trilok Kaul
Executive Director of Marketing & Business Developmentno datano datano data
S. Narayanan
General Manager of HRno datano datano data
M. Eshwar
Chief Vigilance Officerno datano datano data
N. Kumar
GM & Head of IBUno datano datano data
G. Gopal
Executive Director & Head of KBUno datano datano data
P. Krishna
Director of Production & Whole Time Director0.75yrno datano data

1.3yrs

Average Tenure

56yo

Average Age

Experienced Management: BDL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Siddharth Mishra
Chairman & MD1yr₹4.29mno data
S. Piramanayagam
Director of Finance5.17yrs₹6.50mno data
N. Diwakar
Director of Technical & Whole Time Director1.5yrs₹7.70mno data
P. Krishna
Director of Production & Whole Time Director0.75yrno datano data
K. Sampath
Independent Director2.5yrs₹290.00kno data
Ajay Nath
Independent Director2.5yrs₹160.00kno data
Ashwani Mahajan
Government Nominee Director4.17yrsno datano data
K. Narasimha Murthy
Independent Director2.5yrs₹270.00kno data
M. S. Prasad
Government Nominee Director1.17yrsno datano data

2.5yrs

Average Tenure

56yo

Average Age

Experienced Board: BDL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bharat Dynamics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bharat Dynamics Limited
  • Ticker: BDL
  • Exchange: NSEI
  • Founded: 1970
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: ₹33.898b
  • Shares outstanding: 183.28m
  • Website: https://www.bdl-india.in

Number of Employees


Location

  • Bharat Dynamics Limited
  • Plot No. 38-39, TSFC Building
  • Near (ICICI Towers)
  • Hyderabad
  • Andhra Pradesh
  • 500032
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
541143BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2018
BDLNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2018

Biography

Bharat Dynamics Limited manufactures and sells guided missiles and related defense equipment in India. It offers surface to air missiles, anti-tank guided missiles, mechanized infantry weapons, underwater weapons, launchers, counter measure dispensing systems, torpedos, and submarine fired decoys. The company also exports its products. Bharat Dynamics Limited was founded in 1970 and is headquartered in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:24
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.