Disclaimer : This article is for informational purposes only and does not constitute financial advice.

Shares of Bharat Dynamics Ltd (BDL) surged to around ₹1,900–₹1,925 on June 17, 2025, driven by robust volume (~2.9 million shares) and a market cap nearing ₹70,000 crore . This aerospace and defence PSU continues to ride India’s defence expansion wave, as seen in its standalone FY25 revenue skyrocketing 108% year-on-year to ₹1,776.98 crore .

However, caution is warranted - while revenues accelerated, net profit dipped slightly to ₹549.65 crore (versus ₹612.72 crore in FY24), translating to a contraction in TTM EPS to ₹14.99 from ₹33.43 . These trends underline a major reason why BDL trades at steep valuations -TTM P/E hovering above 128x, and P/B near 19x—well beyond industry averages.

Technical indicators suggest near-term resistance in the ₹1,935–₹1,945 zone with strong support around ₹1,890, aligning closely with current VWAP of ~₹1,915 . With zero debt, solid return ratios (ROE ~13.7%), and zero gearing, the defensive posture remains strong .

Final Take: BDL reflects India’s Make‑in‑India defence thrust but carries high valuation risk. Short-term traders might exploit ₹1,890–₹1,935 band. Long-term investors seeking exposure to missile and ammunition space may consider phased entry, staying alert to profitability signals and defence order announcements.