Bharat Dynamics shares tumble 5%; should you consider buying the dip?

Shares of Bharat Dynamics Ltd (BDL) fell 4.66 per cent to settle at Rs 1,892.55 on Thursday. Despite the decline, the stock has surged 66.93 per cent so far this year.

In terms of earnings, BDL reported a 5.5 per cent year-on-year (YoY) drop in net profit to Rs 272.7 crore for the March quarter, compared to Rs 288.8 crore in the same period last year. However, revenue more than doubled to Rs 1,777 crore from Rs 854 crore a year ago. The company’s current order book stands at Rs 22,700 crore, with a robust pipeline of Rs 50,000 crore.

An analyst suggested buying the stock on dips, while another pointed to Rs 1,800 as a key support level.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, advised investors to accumulate BDL shares on every dips, adding that existing shareholders can continue with their positions.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that BDL has undergone a time-wise corrective phase post its strong rally from Rs 1,000 subzones. “Support is visible at Rs 1,800 in the near period. On the higher end, an authoritative breakthrough beyond Rs 2,000 is likely to trigger renewed momentum in the counter,” Krishan added.

Technically, the scrip traded lower than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 37.21. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 7.57 against a price-to-book (P/B) value of 0.84. Earnings per share (EPS) stood at 92.75 with a return on equity (RoE) of 48.52. According to Trendlyne data, BDL has a one-year beta of 1.1, indicating high volatility.

The counter saw heavy trading volume on BSE as around 1.70 lakh shares changed hands on BSE today, higher than the two-week average volume of 1.66 lakh shares. Turnover on the counter came at Rs 32.63 crore, commanding a market capitalisation (m-cap) of Rs 69,373.79 crore.

Bharat Dynamics is a public sector undertaking (PSU) under the Defence Ministry. As of March 2025, the government held a 74.93 per cent stake in the defence PSU.