India's Bharat Dynamics falls as Motilal initiates with 'neutral' on valuation concerns

Bharat Dynamics

10/07/2025 09:41

** Defense manufacturer Bharat Dynamics BARA.NS down 4.8% at 1,890.5 rupees

** Motilal Oswal initiates coverage with a "neutral" rating on stock, sets PT at 1,900 rupees

** Says, although it likes BARA's business model and ability to scale up order book and revenue, at current valuations it would look at lower price points to enter the stock

** Motilal's PT implies a downside of 4% to BARA's last closing price

** Motilal adds, BARA trades at 70x and 52x P/E on FY26 and FY27 estimates; its PT values BARA at 42x FY27 Sept end P/E

** YTD, BARA is up ~68%

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))