BEL bags Rs 1,075 crore contract from MoD; shares gain 5% in volatile market

Shares of Bharat Electronic Limited gained 5 per cent in Monday's intraday trade on the BSE after the Ministry of Defence signed a Rs 1,075 crore contract with Bharat Electronics Limited for the retro-modification of Commander Sight of Battle Tanks-T90 for the Indian Army. 

As per BSE filing by the government-owned aerospace and defence company, the MoU has been signed to carry out retro-modification in 957 tanks. "The total value of the contract is Rs 1,075 crore, including all taxes and duties," read the regulatory filing on Monday. 

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The successful indigenous development of Thermal Imager-based Commander Sight, jointly by IRDE, DRDO and BEL, with improved performance than its predecessor provides a further boost to the 'Make in India' initiative of the Government of India, it said. 

This will provide a fillip to indigenous defence manufacturing and open avenues for export of such advanced technology, said BEL.  

Shares of the government-owned defence company jumped to Rs 209.95 per share as soon as BEL informed about the MoU. At 2.55 pm, shares of BEL were trading with gains of Rs 9.25 or 4.62% to Rs 209.30 a share. As on February 28, shares of BEL have given over 50% return to its shareholders despite the recent corrections, showed technical data of the stock. 

Earlier, brokerage house Anand Rathi has given a target price of Rs 243 per share in one year.  

Shares of Bharat Electronic Limited traded on 52-week high value of Rs 227.95 on November 12, 2021 and has touched year's low value of Rs 115.90 per share on the BSE on March 25 last year.