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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Bharat Dynamics Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:24 pm

Market Cap 33,989 Cr.
Current Price 927
High / Low1,795/547
Stock P/E61.4
Book Value 102
Dividend Yield0.57 %
ROCE24.2 %
ROE17.9 %
Face Value 5.00
PEG Ratio-13.72

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Bharat Dynamics Ltd

Competitors of Bharat Dynamics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
DCX Systems Ltd 3,540 Cr. 317452/23567.4 1020.00 %9.27 %8.08 % 2.00
Data Patterns (India) Ltd 12,866 Cr. 2,2993,655/1,75169.5 2410.28 %19.7 %14.3 % 2.00
Paras Defence and Space Technologies Ltd 3,843 Cr. 9541,593/60977.8 1220.00 %11.4 %7.96 % 10.0
Zen Technologies Ltd 16,101 Cr. 1,7821,999/68879.5 1730.06 %47.3 %33.1 % 1.00
Mishra Dhatu Nigam Ltd 5,818 Cr. 311548/30566.5 72.00.45 %9.44 %7.00 % 10.0
Industry Average51,805.09 Cr1,188.1159.34144.000.37%23.06%17.11%4.45

All Competitor Stocks of Bharat Dynamics Ltd

Quarterly Result

Month

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9561,0762,8414,0794,8874,5883,0693,1051,9142,8172,4892,173
Expenses1,0191,0882,5643,5644,3173,9192,4462,3491,5682,0902,0801,800
Operating Profit-64-12277515569669623756346727409374
OPM %-7%-1%10%13%12%15%20%24%18%26%16%17%
Other Income463464439385300173136889578155259
Interest115544555563
Depreciation504267536263829695907767
Profit before tax348409644841803774671742341710482563
Tax %33%32%31%33%35%32%37%28%24%30%27%
Net Profit235279444562524528423535258500352425
EPS in Rs2,043.132,424.263,856.965,750.084,288.8928.8223.0629.1814.0627.2819.2123.21
Dividend Payout %20%21%19%30%30%25%30%30%52%30%49%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)18.72%26.58%-6.76%0.76%-19.89%26.48%-51.78%93.80%-29.60%
Change in YoY Net Profit Growth (%)0.00%7.85%-33.34%7.52%-20.65%46.36%-78.25%145.57%-123.40%

Bharat Dynamics Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:-5%
3 Years:7%
TTM:1%
Compounded Profit Growth
10 Years:%
5 Years:8%
3 Years:33%
TTM:30%
Stock Price CAGR
10 Years:%
5 Years:40%
3 Years:68%
1 Year:70%
Return on Equity
10 Years:%
5 Years:16%
3 Years:16%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:36 am

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital11511511598122183183183183183183183183
Reserves6179361,5381,7532,0731,7732,0852,4242,5012,8473,0283,4543,549
Borrowings0004445151110983
Other Liabilities5,6946,1996,7597,7866,2084,6973,2503,1283,3343,5955,5356,7816,795
Total Liabilities6,4277,2518,4129,6418,4076,6575,5235,7506,0306,6368,75610,42610,530
Fixed Assets212277518697757868957932915874809824865
CWIP457014212613613047422241747397
Investments113332394450004
Other Assets6,1696,9047,7498,8157,5115,4204,5164,7715,0895,7217,8739,5309,564
Total Assets6,4277,2518,4129,6418,4076,6575,5235,7506,0306,6368,75610,42610,530

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-765284-420-342845041,0685302,130412
Cash from Investing Activity +23914931,047170-33-734-573-1,171-722
Cash from Financing Activity +-72-324-166-769-268-191-173-149-171-148
Net Cash Flow-598109-583-63-15280162-192788-459

Free Cash Flow

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-64.00-12.00277.00511.00565.00665.00618.00741.00335.00717.00400.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days349343131261634062392748
Inventory Days373534286302276254380222636534584841
Days Payable9915310020218612911583322171142325
Cash Conversion Cycle307475230114101186328178375403469564
Working Capital Days-1,461-1,137-126-106-1144128196169145238322
ROCE %46%48%40%37%32%31%13%26%16%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters74.93%74.93%74.93%74.93%74.93%74.93%74.93%74.93%74.93%74.93%74.93%74.93%
FIIs0.41%1.43%1.73%2.11%2.40%2.88%3.24%2.83%3.36%3.09%3.09%2.95%
DIIs17.92%17.56%17.38%16.38%14.59%13.00%12.39%14.10%13.78%12.81%13.32%12.39%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%
Public6.75%6.08%5.96%6.59%8.08%9.18%9.43%8.15%7.92%9.17%8.64%9.72%
No. of Shareholders1,24,3031,16,6421,10,4981,12,6481,55,0361,69,8691,77,5961,66,5011,67,1831,96,5662,05,8872,48,158

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Flexi Cap Fund - Regular Plan3,890,7720.96379.02333,6682024-11-201066.06%
HDFC Balanced Advantage Fund - Regular Plan3,865,1050.59376.52333,6682024-11-201058.37%
Nippon India ELSS Tax Saver Fund627,4410.5672.96333,6682024-11-2088.04%
HDFC Capital Builder Value Fund - Regular Plan700,0001.2168.19333,6682024-11-20109.79%
Edelweiss Mid Cap Fund535,7371.4662.29333,6682024-11-2060.56%
Axis Midcap Fund521,4260.2660.63333,6682024-11-2056.27%
Nippon India Small Cap Fund416,7450.1248.46333,6682024-11-2024.9%
Edelweiss Small Cap Fund333,6681.3838.8333,6682024-11-200%
Motilal Oswal Large and Midcap Fund250,0001.0729.07333,6682024-11-20-25.08%
Nippon India Innovation Fund225,0002.4426.16333,6682024-11-20-32.57%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.0010.0010.0010.0010.00
Basic EPS (Rs.)16.7219.2227.2814.0629.18
Diluted EPS (Rs.)16.7219.2227.2814.0629.18
Cash EPS (Rs.)18.5423.4332.2119.2234.45
Book Value[Excl.RevalReserv]/Share (Rs.)99.21175.22165.35146.48142.23
Book Value[Incl.RevalReserv]/Share (Rs.)99.21175.22165.35146.48142.23
Dividend / Share (Rs.)5.289.358.307.358.80
Revenue From Operations / Share (Rs.)64.63135.82153.72104.42168.88
PBDIT / Share (Rs.)24.5130.7545.6823.9746.02
PBIT / Share (Rs.)22.6826.5440.7518.8140.76
PBT / Share (Rs.)22.5926.2938.7318.6040.51
Net Profit / Share (Rs.)16.7219.2227.2814.0629.18
PBDIT Margin (%)37.9122.6329.7122.9527.25
PBIT Margin (%)35.0819.5326.5118.0124.13
PBT Margin (%)34.9519.3525.1917.8123.98
Net Profit Margin (%)25.8614.1417.7413.4617.28
Return on Networth / Equity (%)16.8410.9616.499.6020.51
Return on Capital Employeed (%)11.337.5218.7510.0222.16
Return On Assets (%)5.924.067.614.329.40
Asset Turnover Ratio (%)0.240.320.440.320.55
Current Ratio (X)3.073.452.141.941.98
Quick Ratio (X)2.412.621.501.391.61
Inventory Turnover Ratio (X)0.580.690.820.860.82
Dividend Payout Ratio (NP) (%)0.0047.6129.1465.7721.41
Dividend Payout Ratio (CP) (%)0.0039.0524.6848.1218.14
Earning Retention Ratio (%)0.0052.3970.8634.2378.59
Cash Earning Retention Ratio (%)0.0060.9575.3251.8881.86
Interest Coverage Ratio (X)289.31124.24244.51112.28181.19
Interest Coverage Ratio (Post Tax) (X)198.3278.63156.8066.88115.89
Enterprise Value (Cr.)59967.5914263.068118.624534.982735.79
EV / Net Operating Revenue (X)25.315.732.882.370.88
EV / EBITDA (X)66.7525.319.7010.323.24
MarketCap / Net Operating Revenue (X)27.107.283.563.191.10
Retention Ratios (%)0.0052.3870.8534.2278.58
Price / BV (X)17.655.643.312.271.30
Price / Net Operating Revenue (X)27.107.283.563.191.10
EarningsYield0.010.010.040.040.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bharat Dynamics Ltd as of November 21, 2024 is: 1,127.43

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Bharat Dynamics Ltd is Undervalued by 21.62% compared to the current share price 927.00

Intrinsic Value of Bharat Dynamics Ltd as of November 21, 2024 is: 1,076.98

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Bharat Dynamics Ltd is Undervalued by 16.18% compared to the current share price 927.00

Last 5 Year EPS CAGR: -4.47%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.08%, which is a positive sign.
  2. The company has higher reserves (2,198.31 cr) compared to borrowings (5.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (82.00 cr) and profit (610.67 cr) over the years.
  1. The stock has a high average Working Capital Days of 83.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 310.83, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Bharat Dynamics Ltd:
    1. Net Profit Margin: 25.86%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.33% (Industry Average ROCE: 23.06%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 16.84% (Industry Average ROE: 17.11%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 198.32
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.41
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 61.4 (Industry average Stock P/E: 59.34)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Bharat Dynamics Ltd. is a Public Limited Listed company incorporated on 16/07/1970 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L24292TG1970GOI001353 and registration number is 001353. Currently Company is involved in the business activities of Manufacture of weapons and ammunition. Company’s Total Operating Revenue is Rs. 2817.40 Cr. and Equity Capital is Rs. 183.28 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Aerospace & DefenseKanchanbagh Post Hyderabad Telangana 500058bdlitd@bdl-india.in
http://www.bdl-india.in
Management
NamePosition Held
Mr. A MadhavaraoChairman & Managing Director
Mr. Sunil Chintaman MoneIndependent Director
Mr. Nandakumar SubbaramanIndependent Director
Dr. Pawan SthapakIndependent Director
Prof. (Dr) Sangamitra MishraIndependent Director
Mr. Rajendra Kumar ShekhawatIndependent Director
Mr. Jashwant LalIndependent Director
Mr. U Raja BabuGovernment Director
Mr. Anurag BajpaiGovernment Director
Mr. P V Raja RamWhole Time Director

FAQ

What is the latest intrinsic value of Bharat Dynamics Ltd?

The latest intrinsic value of Bharat Dynamics Ltd as on 21 November 2024 is ₹1127.43, which is 21.62% higher than the current market price of ₹927.00.

What is the Market Cap of Bharat Dynamics Ltd?

The Market Cap of Bharat Dynamics Ltd is 33,989 Cr..

What is the current Stock Price of Bharat Dynamics Ltd as on 21 November 2024?

The current stock price of Bharat Dynamics Ltd as on 21 November 2024 is ₹927.

What is the High / Low of Bharat Dynamics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bharat Dynamics Ltd stocks is 1,795/547.

What is the Stock P/E of Bharat Dynamics Ltd?

The Stock P/E of Bharat Dynamics Ltd is 61.4.

What is the Book Value of Bharat Dynamics Ltd?

The Book Value of Bharat Dynamics Ltd is 102.

What is the Dividend Yield of Bharat Dynamics Ltd?

The Dividend Yield of Bharat Dynamics Ltd is 0.57 %.

What is the ROCE of Bharat Dynamics Ltd?

The ROCE of Bharat Dynamics Ltd is 24.2 %.

What is the ROE of Bharat Dynamics Ltd?

The ROE of Bharat Dynamics Ltd is 17.9 %.

What is the Face Value of Bharat Dynamics Ltd?

The Face Value of Bharat Dynamics Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Bharat Dynamics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE