Shares of Bharat Dynamics were tanking at the bourses on Monday after the company’s June quarter results disappointed investors. The stock slumped around 20% to hit an intraday low of ₹1,222.35.
What Happened: Bharat Dyanamics' net profit tanked 82% year-on-year to ₹7.21 crore in the June quarter. Its operational revenue crashed 35% year on year to ₹191.6 crore. EBITDA loss for the quarter came in at ₹52.3 crore in Q1 FY25, which was higher than the ₹32.6 crore loss in the same quarter last year.
The company reported no major order wins during the June quarter and cited the ongoing geopolitical conflicts as reasons for delays in receiving key components, which negatively impacted its quarterly performance.
See Also: Trent Shares Hit All-Time High As Brokerages Raise Target To ₹7,000 And More After Q1 Print
Brokerage Reactions: Antique Broking maintained its “buy” rating on the stock with a price target of ₹1,579, down from the previous ₹1,643, noting that normalisation of execution will be crucial for further re-rating of the stock.
ICICI Securities upgraded the stock to a “buy” rating with a target price of ₹1,745, expecting improved performance by the second half of FY25 as supply chain issues are resolved. The management’s strategy to increase exports, boost research and development spending and improve inventory management further supports positive outlooks.
Analysts at ICICI Securities are optimistic about Bharat Dynamics’ ability to achieve strong revenue growth in FY25 and beyond, considering the expected easing of supply challenges and government initiatives to strengthen the rocket force.
Price Action: BDL’s share price was down 7% to trade at ₹1,333.70 in the early hours of trading on Monday.
Read Next: Railway Stocks RVNL, IRFC, Railtel Shoot Up After ₹24,657 Cr Projects Announcement
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.