Shares of Bharat Dynamics Ltd surged during the trading session on Wednesday as the company announced its board meeting to consider stock split. The company board will also consider the payment of interim dividend in the meeting. In an exchange filing with the bourses, Bharat Dynamics said that its board of directors is scheduled to meet on March 15, 2024 (Friday) to consider and approve payment of interim dividend for the financial year 2023-24 and subdivision of the equity shares of the company. Further, Bharat Dynamics has changed the record date for the purpose of payment of interim dividend on equity shares for the financial year 2023-24, if declared by the board, to April 2, 2024 (Tuesday) from March 26, 2024 (Tuesday). The company had announced the previous record data on Monday. Following the announcement of corporate actions, shares of Bharat Dynamics surged more than 4 per cent to Rs 1,866.10, commanding a total market capitalization close to Rs 34,000 crore. The scrip had settled at Rs 1,794.15 in the previous trading session on Tuesday. Bharat Dynamics is one of the leading defence PSUs in India, is engaged in the manufacture of surface to air missiles (SAMs), anti-tank guided missiles (ATGMs), air to air missiles (AAMs), underwater weapons, launchers, countermeasures and test equipment. Bharat Dynamics reported a 61 per cent rise in the consolidated net profit on a year-on-year (YoY) basis to Rs 135 crore for the December 2023 quarter. The ammunition and missile manufacturer's revenue from operations grew 30 per cent YoY to Rs 602 crore in Q3FY24. EBITDA for the reporting period was up by 32 per cent to Rs 119 crore. The company’s revenue and PAT have grown at 14.1 per cent and 16.9 per cent CAGR, respectively over the period FY21-23, while its order backlog is estimated to be at Rs 20,000 crore, said ICICIDirect in its report. "We believe Bharat Dynamics is strongly placed to benefit from increasing capital outlay for indigenised defence platforms like missiles, torpedoes and Counter-measure dispensing systems. Valuation looks attractive given strong growth ahead led by multiple sectoral tailwinds," it added with a 'buy' rating and a target price of Rs 2,010 on the stock.
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