Share of Bharat Dynamics Limited (BDL) rose 7 per cent to hit an intraday high of Rs 399.00 on BSE after the company announced that it has signed a contract worth about Rs 499 crore with the Ministry of Defence for the manufacturing and supply of Akash Missiles to the Indian Air Force.
The stock ended 2.25 per cent higher at Rs 381.10 against the previous close of Rs 372.70 on BSE. Market cap of the firm rose to Rs 6,984.85 crore.
The stock has gained 12 per cent since the beginning of this year. The share stands higher than 5 day, 10 day and 20 day, 50 day 100 day, 200 day moving averages.
“The company has bagged new orders worth about Rs 2,803 crore (including taxes) during the FY 2020-21 which includes Anti – Tank Guided Missiles order worth about Rs1,820 crore and Surface to Air Missiles order worth about Rs 793 crore,” BDL said.
“With the present contract signed for the supply of Akash to Indian Air Force, the order book position now stands at about Rs 8683 crore. The company is also aiming to expand its footprints in the international market by offering Air to Air Missiles, Anti-Tank Guided missiles, underwater weapons and Counter Measure Systems in addition to Akash Missiles to friendly countries,” it added.
According to MarketsMojo, the stock is trading at a premium compared to its average historical valuations. The technical trend has improved from mildly bullish on May 21, 2021, to a bullish range and has generated 6.46 per cent returns since then.
However, it noted that with a return on equity (ROE) of 9.6, it has a very expensive valuation with a 2.5 price to book value.
“BDL is supplying Akash Missiles to Indian Army and Indian Air Force. With the announcement from the Union Cabinet regarding clearance of the Akash Weapon System for Export, the company is exploring offering Akash for export to foreign countries. BDL has already received export leads from some countries expressing interest in procuring the Missile. The company has a well-established infrastructure and expertise to execute these orders and meet the customer delivery schedule,” said CMD, BDL Commodore Siddharth Mishra (Retd).
BDL is the prime production agency for projects under India’s Integrated Guided Missile Development Programme (IGMDP). Akash is one of the missiles under India’s Integrated Guided Missile Development Programme (IGMDP) being manufactured by BDL, both for the Indian Army and the Indian Air Force. The Missile has been successfully test-fired on several occasions and is regarded as one of the best missiles in its category.
The company also manufactures Anti-Tank Guided Missiles, Air to Air Missiles, Air to Surface Weapons, Launchers, Test Equipment, Underwater weapons, and Counter Measure Systems.
