In the fourth quarter of the financial year 2024-25, the revenue growth of India Dynamics was good. Revenue was almost doubled to Rs 1,777 crore. However, there was a decrease in the Abidta margin. The company believes that there will be further improvement in the examination. The company’s orderbook is strong. BDL is increasing its manufacturing capacity to meet the demand. BDL shares may be good in the long term, given the growing possibilities of improving and export in excellent orderbooks, examinations.
Revenue growth fantastic
BDL’s revenue growth was fantastic in the fourth quarter, which is a big reason for strong examination. However, the Ebitda margin flew from 37 per cent of the fourth quarter of FY24 to 16.8 per cent. It has a high price of raw material and other expenses. Apart from this, the company had to make some special provision in the fourth quarter. After tax in the fourth quarter, the profit declined by 5.5 per cent to Rs 273 crore on a year -on -year basis.
22,700 crore Ordbook
The order book of BDL is Rs 22,700 crore. It has new orders worth Rs 6,700 crore, which the company has received in FY25. This includes an order of Rs 4,400 crore received from Indin Air Force and Rs 3,000 crore for MRSAM missiles from Indian Navy. Further, the company’s revenue is estimated to increase by 30 percent. The company expects an average orderbook to remain Rs 20,000 crore in the next 2-3 years.
Work on more than 40 programs
The company is working on big projects such as Quick Reaction Surface to Air Missile. This includes testing and manufacturing, which will take 6-7 years. In addition, the company is working on more than 40 programs, including the surface -to -air missile and anti -tank guided missiles. However, in the last two years, the company’s examination has affected the issues related to the supply chain.
Exports orderbook worth Rs 2,171 crore
The orderbook of BDL’s exports is Rs 2,171 crore. Currently, the company accounts for 13 per cent stake in the company’s total orderbook. The company hopes that the export of exports in the company’s total revenue will reach 25 per cent in the coming years. Many countries want to import defense equipment from India. In such a situation, there is good possibilities for the company. Exports have more margin. It means that the company’s profit will also be good when exports increase.
Should you invest?
BDL shares are trading at about 54 times the estimated Earnings of FY27. This valuation is not cheap on any scale. However, in view of better possibilities in the long term, investment in the company’s shares can be maintained. On June 30, the company’s stock closed at Rs 1,947 with a rise of 3 per cent. This year this stock has risen about 72 percent.