defense
Bharat Dynamics
BDL · Nifty 50
₹1,309.8
Price 2026-06-17
At a Glance
Fundamental
90/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Bharat Dynamics scores 90/100 on fundamentals (strong). Bharat Dynamics: BROAD EXPANSION regime.
Fundamental Score: 90/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 9.9% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 9.91% is modest margin-driven and stable. Net margin of 17.4% × asset turnover of 0.17x × leverage of 3.4x.
What This Means
Net margin of 17.4% means the company keeps ₹17.4 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.17x means the company generates ₹0.17 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 3.4x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
49.4%
Operating
23.6%
Net
17.4%
Gross margin 49.4% → operating margin 23.6% → net margin 17.4%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.4x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 168.6x — very comfortable. Debt service is not a concern.
Free Cash Flow
STRONGFCF margin at 15.5% — strong cash generation. Business is self-funding.
Peer Comparison
Bharat Dynamics is compared against 7 peers in the defense sector.
Key Watchpoints
Breaks above ₹1375 (+5%)
Trend reversal confirmation
Breaks below ₹1244 (-5%)
Further downside risk
Defense sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Working capital is providing significant cash. Stretching payables — temporary boost.
Collection cycle changing. Customers taking longer to pay — monitor DSO.
High revenue multiple. Market pricing in significant growth or margins expansion.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 3 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes