Following the announcement that it has inked ten agreements with foreign and Local industries, Bharat Dynamics Limited (BDL) shares saw a significant boost on February 16. Shares of the defence equipment manufacturer were up 8.4% on the BSE at 10:38 am, trading at Rs 866.65 per share. The stock has increased by more than 200 percent over the last three years and has returned 87 percent in the
past year.
The company signed these contracts with renowned businesses like Thales, Al Tariq, and Bultexpro, and also collaborated with the Indian Institute of Technology-Madras and Tamil Nadu Industrial Development Corporation, while showcasing its largest-ever assortment of products at the Aero India-2023 event in Bengaluru. The agreement between BDL and Thales will create manufacturing facilities for the Laser Guided Rocket and its essential parts in India. Moreover, BDL and Al Tariq have a contract in place to jointly develop long-range, precision guided munition kits there. Also, as part of the “Made in India” initiative, the business and Bultexpro have committed to establish rocket manufacturing facilities. The partnership with the Indian Institute of Technology Madras will focus on designing and developing propellant grains for various
missiles and cutting-edge armament systems.
Moreover, during Aero India 2023, BDL also launched three new products; Vertical Launched Short-Range Surface to Air Missile (VLSRSAM), Semi-Active Laser Seeker Anti-Tank Guided Missile (SALS ATGM) for BMP-II and Drone Delivered Missile (JISHNU).
According to ICICI Securities, BDL’s current order book of Rs 11,906 crore (3.8x TTM revenues) already provides strong visibility. On the exports front, they think there is a significant market opportunity for many Indian developed and manufactured missiles, due to strong product capabilities with lower cost on high indigenization levels.
