Bharat Dynamics share price declines 6% post Q4 results, dividend announcement: Should you buy or sell the stock?

Stock market today: Bharat Dynamics share price declined almost 6% during the intraday trade on Wednesday, following the announcement of the March quarter results and the dividend.

Bharat Dynamics Q4 Results

Bharat Dynamics, post-market hours on Tuesday, announced its Q4FY25 performance and saw its standalone net profit decrease by 5.54% year-on-year (YoY) to ₹272.77 crore, down from ₹288.78 crore in the same quarter of the prior fiscal year.

However, the total revenue from operations more than doubled from ₹854.12 crore in Q4FY24 to ₹1,776.98 crore in Q4FY25.

Standalone earnings before interest, tax, depreciation and amortisation (EBITDA) for the reviewed quarter stood at ₹398.54 crore, a 1.57% YoY decrease compared with ₹404.90 crore in Q4FY24. The EBITDA margin for Q4FY25 came at 22.43% as against 47.41% YoY.

Bharat Dynamics Dividend Details

The company's board of directors recommended a final dividend for the year ending March 31, 2025, at ₹0.65 per share of face value of ₹5 each. After the shareholders approve it at the next Annual General Meeting (AGM), the dividend will be paid out to the eligible shareholders of Bharat Dynamics within 30 days of the AGM date.

Analysts Views

Analysts remain positive on Bharat Dynamics' share price post the January-March quarter results, led by a strong order book that improves revenue visibility.

In Q4FY25, Bharat Dynamics reported a robust top line (up 108% YoY), continuing its excellent performance into the following year, said Nuvama Institutional Equities. 

“Strong revenue visibility over the next three to four years is provided by the approximately ₹67 billion in order inflows for FY25, which increased the backlog to ₹228 billion (almost seven times FY25 sales),” added Nuvama, even though it remains watchful and believes that timely execution will be the primary growth catalyst for the company.

Bharat Dynamics Technical Outlook

BDL has broken out of a 46-week-long bullish rounding pattern and is now trading above its previous all-time high of ₹1,787, said Anshul Jain, Head of Research at Lakshmishree Investments.

“Despite lower breakout volumes, strong price action and momentum suggest continued strength. The stock now eyes ₹2,050 as the next upside target. For this bullish momentum to sustain, it must hold above ₹1,750 on a closing basis, which serves as a key reversal level and stop-loss for positional traders,” Jain added. 

Bharat Dynamics Share Price Movement

Bharat Dynamics share price opened at ₹1869.95 on the BSE on Wednesday. At the opening levels, the scrip was already almost 4.5% lower than the previous day's closing price of ₹1959.80.

As the session progressed, BDL share price lost further to hit an intraday low of ₹1844.10, translating into almost 6% decline in the defence stock.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.