Shares of Bharat Dynamics climbed 5 percent on Friday, February 17, after the company informed that it entered into 10 Memorandums of Understanding (MoU) with several foreign and Indian companies during the ongoing Aero India – 2023 show.
During Friday’s trade, the stock opened at a price of Rs. 899 per share against the previous close of Rs. 901.80 per share but grew during the early trading session to touch an intraday high of Rs. 947.
It was trading at ₹941.85, up by 4.44 percent, at 10:20 a.m. on the NSE.
The stock touched a 52-week high of Rs. 1,026.95 on October 27, 2022 and a 52-week low of Rs. 406.50 on February 24, 2022, indicating that at the current level, the stock is trading over 131.69 percent above its 52-week low and just 8 percent below its 52-week high.
The stock has grown over 8 percent in the last six months. In the past one year, it has given a positive return of nearly 95 percent. Furthermore, the stock has gained almost 137.5 percent in the last five years.
At the Aero India-2023 event in Bengaluru, Bharat Dynamics showcased its largest-ever display of products and also signed agreements with Thales, Al Tariq, and Bultexpro. The company has also collaborated with the Indian Institute of Technology-Madras and Tamil Nadu Industrial Development Corporation.
Under the 'Make in India' initiative, BDL's agreement with Thales will establish manufacturing facilities in India for Laser Guided Rocket and its key components. This is in addition to a deal with Al Tariq to jointly produce all-weather, long-range precision-guided munition kits.
Additionally, BDL will set up manufacturing facilities for rockets with Bultexpro. With the Indian Institute of Technology Madras, BDL will work on the design and development of propellant grains for various missiles and futuristic weapon systems.
During Aero India 2023, BDL also launched three new products: Vertical Launched Short-Range Surface to Air Missile (VLSRSAM), Semi-Active Laser Seeker Anti-Tank Guided Missile (SALS ATGM) for BMP-II and Drone Delivered Missile (JISHNU).
Analysts believe that Bharat Dynamics, being one of the leading defence public sector undertakings in India, could be a beneficiary of the government's focus on the defence sector.
Bharat Dynamics is engaged in the manufacturing and production of guided missile systems. The company has a product portfolio consisting of surface-to-air missiles (SAMs), anti- tank guided missiles (ATGMs), underwater weapons, launchers, countermeasures dispensing systems (CMOS), and test equipment.
According to a MintGenie poll, 6 analysts on an average have a ‘BUY’ call on the stock.