Stock Market update: Bharat Dynamics shares up by 7% as the company bags order worth ₹3,132 crore

Stocks of Bharat Dynamics are up by 7% to ₹519.30 per equity share against the previous close at ₹487.40 per share, in today’s early trade after the company signed a contract worth ₹3,132 crore with the Indian Army.

The shares of Bharat Dynamics Ltd surged by 7% at ₹519.30 per share against the previous close at ₹487.40 per share, in today’s early trade on NSE after the company signed a contract worth ₹3,132 crore with the Indian Army. The contract is about manufacturing and supplying of Konkurs – M AntiTank Guided Missiles to the Indian Army, and will be executed in three years time period.

“With this contract, the company’s order book position stands at ₹11,400 crore (net),” BDL said in an exchange filing. In the last month, the stock has performed well in the market by surging 38%, against a 2% gain in the benchmark index.

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Konkurs – M is being manufactured by BDL under a license agreement with a Russian OEM (Original Equipment Manufacturer). The missile has been made domestic up to the maximum extent. BDL is also providing Konkurs- M missiles for export to friendly foreign countries.

BDL further said it has increased its manufacturing capacity to meet the domestic as well as overseas demand for Konkurs – M. As a part of its global outreach, BDL is also offering Man-Portable Anti-Tank Guided Missiles, Nag, Milan-2T and Amogha, in addition to Konkurs – M, for exports.

BDL, an Anti Tank Guided Missile (ATGM) company, has forayed into the field of underwater weapon systems and air-to-air missiles and associated equipment. It is the sole supplier of SAMs, Torpedoes and ATGMs in India. It is the lead integrator for the Akash weapon system for Army. BDL has also designed and developed a Counter Measure Dispensing System (CMDS) for the Indian Armed Forces (IAF).

BDL has collaborated with DRDO & foreign Original Equipment Manufacturers (OEMs) for the manufacture and supply of various missiles and allied equipment to the Indian Armed Forces. “The company has a crucial opportunity in expanding its order book to ₹23,000-25,000 crore over the next two to three years,” ICICI Securities said in a note.