Defence Stocks: Bharat Electronics hits a 52-week high after defence ministry order boost

After the defence ministry approved capital acquisition proposals worth approximately Rs 7,800 crore, including the procurement of an electronic warfare (EW) suite for Mi-17 V5 helicopters, prominent defence stocks such as Hindustan Aeronautics Ltd., Bharat Electronics Ltd., Bharat Dynamics Ltd., and Mazagon Dock Shipbuilders started their respective trading sessions on the BSE on Friday in the green. 

The defence ministry said on Thursday that the EW suite would be procured from Bharat Electronics Limited (BEL). "A Defence Acquisition Council (DAC) meeting, held under the chairmanship of Defence Minister Rajnath Singh, accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth approximately Rs 7,800 crore.

To enhance the efficiency of the Indian Air Force, the DAC has granted AoN for procurement and installation of Electronic Warfare (EW) Suite on Mi-17 V5 helicopters under Buy (Indian-IDDM) category," the ministry said in a statement on Thursday.

ZeeBiz takes a look at the performance of defence stocks in early trading on Friday.

Hindustan Aeronautics Ltd.

A day after hitting the 52-week high on Thursday, the share of HAL also started on a positive note and touched a high of Rs 4,020 in early trading on Friday.

The shares of the company have been trading ex-dividend since Thursday. 

Bharat Electronics Ltd.

BEL seems to be cashing in on its position as the central figure in the defence ministry's contract of Rs 7,800 as the company's share hit a 52-week high of Rs 138.20 in early trading on Friday.

What is more interesting about the recent journey of the company is that it is the fourth day in succession when the share has hit a high of 52 weeks. 

Bharat Dynamics Ltd.

Its made an upward journey on Friday morning, rising as high as Rs1,168.70.

Early this month, the company announced its Q1 numbers, reporting a jump of 5 per cent in its profit after tax.

The share has jumped 22.82 per cent in the last six months and 43.84 per cent in the last year compared to the Nifty 50's 10.99 per cent and 10.17 per cent jumps during the same respective periods. 

Mazagon Dock Shipbuilders

The Mumbai-based shipbuilder's share traded as high as Rs 1886.90 on Friday after it announced that the fourth ship of Project 17A (Nilgiri Class) would be launched on September 1, 2023, at 1224 Hrs from the MDL premises in Mumbai.

"Hon’ble Vice President of India, Shri Jagdeep Dhankhar, will be the chief guest of the occasion and the ship will be launched and named by Dr (Shrimati) Sudesh Dhankhar, wife of Hon’ble Vice President," the company said in a BSE filing on Thursday.
 

Cochin Shipyard Ltd.

The stock of Cochin Shipyard gathered pace in early trading and reached as high as Rs 863 on Friday. The company's share has been performing well and hit a 52-week high last Friday after the company announced strong Quarter 1 results.

Solar Industries Ltd.

Solar Industries Ltd hit its 52-week high of Rs 4,613.40 on Friday.

The share has been flying high for some time given the Indian government's high emphasis on manufacturing defence equipment in India under the Atmanirbhar Bharat scheme.

The company that manufactures explosives for defence has seen its share soar 20.97 per cent in the last one month and 23.03 per cent in the last six months.

The Nifty 50 index, meanwhile, has declined 1.91 per cent in the last month.