Shares of Bharat Dynamics Ltd on Wednesday surged 4.88 per cent to hit a one-year high of Rs 1,674.90. The stock eventually settled 2.22 per cent higher at Rs 1,632.45. At this price, the scrip has ascended by 99.02 per cent in the last six months.
The counter saw heavy trading volume on BSE today as around 7.06 lakh shares changed hands. The figure was way more than the two-week average volume of 1.74 lakh shares. Turnover on the counter came at Rs 115.79 crore, commanding a market capitalisation (m-cap) of Rs 59,839.50 crore.
Analysts continued to stay positive on the counter. One of them suggested accumulating it "during pullbacks".
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, BDL has been consistently performing well. "The state-owned firm has been one of key beneficiaries of domestic defence activities that have taken place. Investors with moderate risk-appetite can accumulate the stock with medium- to long-term view," he stated.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "BDL has demonstrated robust growth in the current calendar year. The stock is currently hovering near its all-time highs in the pivotal range of Rs 1,650-1,680. A decisive movement could lead to further gains. On the downside, support is anticipated around Rs 1,520-1,500, followed by a strong support level of Rs 1,380-1,360 from a strategic standpoint."
The market sentiment remains positive and purchasing the stock during pullbacks is likely to yield favorable results for short to medium-term investors, he suggested.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock has potential to hit an upside target of Rs 1,750. Keep stop loss placed at Rs 1,550 for this trade."
Bharat Dynamics is a public sector undertaking (PSU) under the defence ministry. As of March 2024, the government held a 74.93 per cent stake in the defence PSU.