1:2 Split, 17% Dividend: Defence PSU Stock BDL Gives 0% Returns In Sept 2024; Buy-On-Dips? PL Sets Rs 1,400/TP

Defence PSU giant, Bharat Dynamics (BDL) has given zero returns in overall September 2024, despite the latest week in gains. On Monday, September 30, the stock price ended at Rs 1158.90 apiece, up by 2.4% on BSE. Despite the latest upside, BDL shares are down by 11.11% in 30 days. This brings in a buy-on-dips opportunity as Prabhudas Lilladher sets a target price of Rs 1,300 to Rs 1,400 on the stock.

Prabhudas believes that BDL has witnessed decent erosion from its peak levels, and found support near 200 DMA of 1,134. The chart of BDL looks attractive as the moving averages indicator RSI has recovered significantly.

BDL Share Price:

The stock price is down by more than 35% from its 52-week high of Rs 1,794.70 apiece. However, that does not stop BDL from emerging as a multi-bagger with gains of 157% from its 52-week low of Rs 450.50 apiece.

The price-to-equity ratio on BDL is at 73.48x, while the return on equity is stable at 15.90%. YTD, BDL shares are up by 34.3% on BSE.

However, BDL shares witnessed a massive correction in September month, declining by 11.11%. In the start of September, BDL stock was above Rs 1,300 levels.

BUY BDL Share Price:

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, in its latest note, said, BDL has witnessed decent erosion from the 52-week high level at 1789 and recently found support near the 200 DMA level of 1134. The 50%% retracement level of the recent fall is also near the 1100 zone, where it has consolidated and is currently indicating a pullback with much improvement in the bias witnessed.

Parekh added, "The RSI has recovered significantly from the highly oversold zone, indicating a trend reversal and a buy signal. With the chart looking attractive, we suggest buying the stock for an upside target of 1300-1400, keeping the stop loss of 1000."