Shares of Bharat Dynamics Limited (BDL) surged on February 16 after the company announced that it has signed ten agreements with foreign and Indian companies.
At 10:38 am, shares of defence equipment maker were trading at Rs 866.65 apiece on the BSE, up 8.4 percent. The stock has given 87 percent returns in the past one year and has skyrocketed over 200 percent in the past three years.
The company has been showcasing its largest-ever display of products at the Aero India-2023 event in Bengaluru, during which it signed these agreements with renowned companies like Thales, Al Tariq, and Bultexpro, along with collaborations with the Indian Institute of Technology-Madras and Tamil Nadu Industrial Development Corporation.
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BDL's agreement with Thales will establish manufacturing facilities in India for Laser Guided Rocket and its key components. BDL has also signed a deal with Al Tariq to jointly produce all-weather, long-range precision guided munition kits in India. Additionally, the company has agreed to set up manufacturing facilities for rockets with Bultexpro under the 'Make in India' initiative. Moreover, the collaboration with the Indian Institute of Technology Madras will work on the design and development of propellant grains for various missiles and futuristic weapon systems.
Furthermore, the company has signed an agreement with Tamil Nadu Industrial Development Corporation Limited to work on new programs for the latter.
Analysts believe that Bharat Dynamics, being one of the leading defence public sector undertakings in India, could be a beneficiary of the government's focus on defence sector. Indian defence capital budget was hiked by about 7 percent YoY to Rs 1.62 trillion in the recent Budget.
The defence equipment manufacturer's order book as of November-end stood at Rs 11,906 crore, providing strong revenue visibility, as per a report by ICICI Securities.
Bharat Dynamics' products include surface-to-air missiles, anti-tank guided missiles, air-to-air missiles, underwater weapons, launchers, countermeasures, and test equipment. With the latest collaborations and agreements, Bharat Dynamics is all set to take its products and services to new heights and solidify its position as a leading defence public sector undertaking in India.
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