Defence stock engaged in the business of manufacturing and supplying missiles and allied defence equipment jumped upto 8 percent in the day’s trade upon receiving work order worth Rs. 2,960 Crores from Ministry of Defence.
Price Action
With a market capitalization of Rs. 44,542 Crores, the shares of Bharat Dynamics Limited were trading at Rs. 1,195 per equity share, up 5 percent from the previous day’s close price of Rs. 596.60.
What Happened
Bharat Dynamics Limited engaged in the business of manufacturing and supplying missiles and allied defence equipment, has signed a startegic contract with The Ministry of Defence to bolster Indian Defence Capabilities against critical threats under the “Aatmanirbhar Bharat” ecstasy.
It involves the supply of Medium-Range Surface-to-Air Missiles (MRSAM) a standard fit, onboard multiple Indian Naval Ships, for the Indian Navy for a consideration of Rs. 2,960 Crores. The missiles are planned to be fitted on the majority of the future platforms planned for acquisition.
Tthe missiles would be supplied by Bharat Dynamics Limited under ‘Buy (Indian)’ category with largely indigenous content and it would generate employment of approx. 3.5 lakh mandays in the defence industry, including various MSMEs.
About the Company
Bharat Dynamics Limited is engaged in the business of manufacturing and supplying missiles and allied defence equipment like torpedo advanced lightweight, medium-range surface-to-air missiles, quick-reaction surface-to-air missiles, and many more.
It is instrumental in enhancing India’s submarine capabilities by developing and manufacturing missile systems that can be launched from submarines, providing submarines with offensive capabilities to target land and maritime threats.
It has a stong order order book of Rs. 18,852 Crores as of Q2FY24 with Rs. 20,000 Crores of work order in pipeline for the next 2-3 years, with export orders mostly consisting for supply of missiles of Akash SAM, Astra, Light Weight Torpedo and many others.
Financials
As per the latest financials available its Revenue from operations Rs. 694.11 Crores in Q2FY24 to Rs. 630.8 Crores in Q2FY25, accompanied by profits of Rs. 147.09 Crores to Rs. 122.53 Crores.
Written by: Bharath K.S
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