$BDL

Bharat Dynamics Ltd traded higher on Thursday despite Goldman Sachs reiterating its bearish view on the defence PSU, citing execution challenges and near-term margin pressures that it believes outweigh the benefits of a stronger order pipeline. The stock rose 0.6 percent to Rs 1,391.90 during morning trade. Goldman Sachs maintained its "Sell" rating on the stock with a target price of Rs 1,275 per share, implying a downside of around 8 percent from the previous session's closing price. The brokerage said recent order wins have strengthened Bharat Dynamics' revenue visibility but warned that execution risks remain a key overhang. It expects a larger proportion of upcoming contracts to involve external procurement, which could put pressure on profitability and make margin expansion difficult in the near term. Goldman Sachs also noted that key orders linked to Hindustan Aeronautics are likely to be executed over a period of 24 to 60 months, suggesting that a meaningful contribution to revenue may only begin from FY28 onwards. While the improving order book enhances long-term revenue visibility, the brokerage believes concerns around execution timelines, project mix and margin sustainability continue to limit the stock's near-term investment appeal.