Bharat Dynamics is a major supplier of missiles for the Indian defence and despite improved revenue visibility, cash flow and strong balance sheet, the stock finds little interest.
Business is improving with execution picking up during the March quarter. Revenue was up 147 percent on a sequential basis.
With the help of higher scale and cost-cutting, EBITDA margins have jumped by about 767 basis points sequentially to about 30 percent.
In terms of revenue visibility, the current order book stands at about Rs 8,300 crore which is four times its annual revenue. In the March quarter order inflow was up by 33 percent on a year-on-year basis and the company expects another set of orders worth Rs 13,000 crore in the current fiscal.
In the special segment of ‘Moneycontrol Pro Ideas For Profit’, moneycontrol.com’s Jitendra Gupta gets more details on the company’s performance, going forward.
Watch the video for more.
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(Edited by : Abhishek Jha)