Stocks To Buy: Motilal Oswal bets on this defence stock for up to 32% upside

Brokerage firm Motilal Oswal has maintained its "buy" recommendation on defence equipment manufacturer Bharat Dynamics Ltd. (BDL) on Friday, November 14, after the company reported its September quarter results after market hours on Thursday.

Motilal Oswal maintained its "buy" rating on the stock and raised its price target to ₹2,000 from ₹1,900 earlier. The revised price target implies a potential upside of 32% from Thursday's closing levels.

With supply chain issues easing out, Bharat Dynamics ramped up its execution, resulting in a strong quarterly performance from the company. Only the margins were hit due to the ongoing project mix.

Bharat Dynamics also announced an order worth ₹2,000 crore from the Invar anti-tank missiles, and Motilal Oswal believes that the company coluld benefit form the emergency procurement.

The brokerage expects Bharat Dynamics' revenue, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), and Net Profit to grow at a Compounded Annual Growth Rate (CAGR) of 35%, 64% and 51% respectively, over financial year 2025-2028.

"Going forward, we expect execution growth to remain strong, driven by a healthy order book and also expect margins to improve as the operating leverage kicks in," Motilal Oswal wrote.

Choice Broking also maintained its "buy" rating on Bharat Dynamics, with a price target of ₹1,965, valuing the stock at 35 times financial year 2027-2028 estimated Earnings Per Share (EPS).

12 analysts have coverage on Bharat Dynamics, eight of which have a "buy" rating, three say "sell", while one has a "hold" rating.

Shares of Bharat Dynamics ended 1.1% lower on Thursday at ₹1,516. The stock has risen 34% so far in 2025.