Motilal Oswal Recommends 'BUY' on Bharat Dynamics, Sets Target at Rs 1800

• Motilal Oswal maintains a 'BUY' rating for Bharat Dynamics (BDL) despite weaker-than-expected 3QFY26 performance.
• BDL's 3QFY26 execution was impacted by delays in component integration and higher share of bought-out components, affecting margins.
• Healthy order inflows of approximately INR54 billion in 9MFY26, with an additional INR40-50 billion expected in 4QFY26.
• Motilal Oswal revised down estimates for FY26/FY27/FY28 by 21%/17%/14% due to margin concerns from bought-out components.
• Revised target price (TP) set at INR1,800 (from INR2,000) based on 42x two-year forward earnings, projecting strong CAGR for FY25-28.

Why It Matters: Motilal Oswal recommends 'BUY' for Bharat Dynamics with a revised target of Rs 1800, citing strong future prospects.