Synopsis:
MP3 International, a subsidiary of GRADEONE, has signed a landmark agreement with Kalyani Strategic Systems Limited, a subsidiary of Bharat Forge Limited, to supply large-calibre 155mm howitzer barrels to the UAE.
The shares of the global company, known for its high-performance and safety-critical components, drew attention after its subsidiary signed a major deal with an Abu Dhabi-based defence supplier to provide large-calibre 155mm howitzer barrels.
The company has a market capitalization of Rs.58,671.04 crore. The shares of Bharat Forge Limited were trading at Rs.1,223.70, up by 1.02 percent, higher than the previous close of Rs.1,211.40 per share.
Supply order
Kalyani Strategic Systems Limited, a subsidiary of Bharat Forge Limited, and GRADEONE, a subsidiary of an Abu Dhabi-based company, have signed a landmark contract. The agreement is about Kalyani Strategic Systems Limited to supply critical spare parts, barrels for large 155mm howitzers, and howitzers that perform better and last longer, boosting operational readiness and mission efficiency.
The contract strengthens long-term defence cooperation between the UAE and India, opening opportunities in key markets as well as in Southeast Asia and the MENA region. It also supports the development of both countries’ defence ecosystems by enhancing technology capabilities and promoting shared goals of security and stability.
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About the company & Financials
Bharat Forge Limited, based in Pune and part of the Kalyani Group, is a global company that provides high-performance and innovative components and solutions across industries such as automotive, railways, power, defence, construction and mining, aerospace, marine, and oil & gas.
The company manufactures and sells forged and machined parts, including aluminium castings, for both the automotive and industrial sectors. It has production facilities in Mundhwa, Baramati, Chakan, Satara, and Nellore.
The company witnessed a decline in operating revenue, falling from Rs.4,106 crore in Q1FY25 to Rs.3,909 crore in Q1FY26. Meanwhile, its net profit rose from Rs.175 crore to Rs.284 crore.
The financial indicators including an ROE of 11.6 percent and an ROCE of 12.2 percent.The stock has a price-to-earnings ratio of 56.97, much higher than the industry average of 28.96, it is overvalued compared to its peers.
Written By Jhanavi Sivakumar
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