Bharat Dynamics share price soared 7.6 per cent to Rs 844 on BSE on Wednesday, after the company received a contract worth Rs 2,971 crore from the Ministry of Defence. The state-owned defence company has signed a contract worth Rs 2,971 crore with the Ministry of Defence for supply of ASTRA MK-I Beyond Visual Range (BVR) Air to Air Missile and associated equipment to Indian Air Force & Indian Navy. Bharat Dynamics stock price has gained 15.5 per cent in five days, and more than doubled in six months. On a year-to-date basis, the stock has rallied 113 per cent, while it has jumped 126 per cent in one year.
Bharat Dynamics has shown a strong breakout from a Symmetrical Triangle formation. Such formations are neutral but often act as a continuation pattern, said an analyst. “Bharat Dynamics has shown a strong breakout from such formation with a breakaway gap. In all probability, if the present levels are sustained, the stock may inch higher towards its previous high point of 904. Investors can enter at present levels with a medium term investment horizon,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com.
ICICI Securities noted that Bharat Dynamics reported better than expected Q4FY22 print, with revenue up by 21.5 per cent on-year and 71.8 per cent sequentially. The company’s reported EBIDTA margins were 29.3% in Q4FY22 as against 30.3% in Q4FY21. Its net profit was up 1.5 per cent on-year and 24 per cent sequentially. The research firm has given an ‘add’ rating to the stock, as the company is the key domestic supplier of SAMs and ATGMs to the Indian Armed Forces.
Pavitraa Shetty, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com, that technically, Bharat Dynamics stock looks bullish and a move up to 868-900 could be possible in the coming sessions. “784 remains an immediate and strong support,” Shetty said.