Bharat Dynamics shares rise 2% after PSU firm receives Rs 4,362-crore order from Ministry of Defence

Bharat Dynamics

Bharat Dynamics (BDL) shares surged nearly 2 percent on March 26 after the company announced that it has received an order worth Rs 4,362 crore from the Ministry of Defence. The shares of the company were trading at around Rs 1,336 apiece in the afternoon.

In an exchange filing released within the market hours of March 26, Bharat Dynamics said it has signed a contract worth Rs 4,362 crore with the Ministry of Defence for the supply of armaments to the Indian Armed forces. The company however didn't reveal other details related to the contract, as they are "confidential in view of national security".

BDL shares have seen significant surge in recent days, rising over 30 percent in the past one month. The rise in the stock price comes amid a rally seen by majority of the defence stocks. The stock is currently around 60 percent higher than its 52-week low of Rs 837 per share which it had hit in March last year. It is however still down nearly 26 percent from its 52-week high of Rs 1,795 per share.

Notably, the shares of the PSU company debuted on the stock exchange at Rs 428 apiece in March 2018. The stock has now surged over 3 times from that level to trade at the current market price. The rise in the stock price comes amid a low sentiment in the overall market, with Sensex dropping nearly 570 points and Nifty being down around 0.6 percent.

BDL's defence peer stocks also recorded strong gains on March 26, dodging the overall market trend. The rally in the stock prices pushed the Nifty Defence India index into the green. Hindustan Aeronautics (HAL) was the top gainer on the stock, rising over 3 percent after GE Aerospace announced that it has delivered the first of the 99 F404-IN20 engines for the Tejas Light Combat Aircraft Mk 1A fight jet after long delays.