Bharat Dynamics zooms 10% on inking Rs 3,132 cr contract with Indian Army

Shares of Bharat Dynamics (BDL) hit a new high of Rs 535.70, on rallying 10 per cent on the BSE in Thursday’s intra-day trade after the company signed a contract worth Rs 3,131.82 crore with the Indian Army. The contract is for manufacture and supply of Konkurs - M AntiTank Guided Missiles to the Indian Army, and will be executed in three years.

With this contract, the company’s order book position stands at Rs 11,400 crore (net), BDL said in an exchange filing.

At 09:16 am; the stock traded 8 per cent higher at Rs 525, as compared to 0.21 per cent decline in the S&P BSE Sensex. In the past one month, the stock has outperformed the market by surging 38 per cent, as against 2 per cent gain in the benchmark index.

Konkurs – M is being manufactured by BDL under license agreement with a Russian OEM (Original Equipment Manufacturer). The missile has been indigenized upto maximum extent. BDL is also offering Konkurs- M missile for export to friendly foreign countries, the company said.

BDL further said it 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.

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 Akash weapon system for Army. BDL has also designed and developed Counter Measure Dispensing System (CMDS) for the Indian Armed Forces (IAF).

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