Bharat Dynamics shares up 10%; stock hits new high as company signs Rs 3100 cr pact with Indian Army

The shares of defence equipment manufacturer – Bharat Dynamics Limited (BDL) has hit a new high of Rs 535.70 per share after surging by almost 10 per cent on the BSE intraday trade on Thursday. This was on the back of the company signing a contract worth Rs 3,131.82 crore with the Indian Army on Wednesday.  

As per Bharat Dynamic’s filing to exchanges, “Bharat Dynamics Limited (BDL) and Indian Army have signed a contract worth Rs 3,131.82 crore for manufacture and supply of Konkurs - M AntiTank Guided Missiles to the Indian Army, will be executed in three years.” 

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With this contract, the company said its overall order book position stands at Rs 11,400 crore (net) including the Konkurs-M contract signed on Wednesday. 

 Konkurs – M is being manufactured by BDL under license agreement with a Russian OEM (Original Equipment Manufacturer). The missile has been indigenized up to maximum extent. BDL is also offering Konkurs- M missile for export to friendly foreign countries, Commodore Siddharth Mishra (Retd) – Chairman and Managing Director of Bharat Dynamics said in a comment. 

Bharat Dynamics has augmented 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. 

At around 11:44 am; the stock trading over 6 per cent higher at Rs 516.7 per share, as against 0.64 per cent decline in the S&P BSE Sensex. The scrip in the last one month has outperformed the market by surging 38 per cent, as against 2 per cent gain in the benchmark index. 

BDL is laying lot of thrust on indigenization of its products manufactured under Transfer of Technology with foreign OEMs. It is also strengthening its in-house R&D capabilities to take up product innovation to mitigate Indian armed forces’ product dependency on foreign countries.