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Bharat Dynamics share price surges 8% on winning Rs 2,960-cr order from MoD

Bharat Dynamics share price: Ministry of Defence has signed a contract with Bharat Dynamics Limited for the supply of Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy

Defence equipments, weapons, India weapons, Army, weapon

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SI Reporter New Delhi

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Bharat Dynamics share price jumped as much as 8 per cent in the stock markets on Thursday, January 16, 2025. Bharat Dynamics shares hit an intraday high of Rs 1,227.9 per share on the BSE and Rs 1,229 per share on the NSE.
 
By comparison, the BSE Sensex index was up 0.45 per cent at 1:00 PM.
 
The sharp uptick in Bharat Dynamics shares came after the Centre announced that it has signed a contract with the company worth nearly Rs 3,000 crore.
 
In a press release, on Thursday, the Ministry of Defence, Government of India, said it has signed a contract with Bharat Dynamics Limited (BDL) for the supply of Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy at a cost of approximately Rs 2,960 crore.
 
 
“With the emphasis on ‘Aatmanirbhar Bharat’, the missiles would be supplied by BDL under ‘Buy (Indian)’ category with largely indigenous content. The contract would generate employment of approximately 3.5 lakh man-days in the defence industry, including various MSMEs,” MoD said.
 
The government has entrusted Bharat Dynamics to supply MRSAM system, which is a standard fit, onboard multiple Indian Naval Ships and is planned to be fitted on most of the future platforms planned for acquisition.
 
The contract marks a critical milestone in the ongoing efforts to bolster India’s defence capabilities and indigenise advanced military technology, Centre said.
 
Bharat Dynamics is one of the leading defence public sector undertakings (PSUs) in India, engaged in the manufacture of Surface to Air missiles (SAMs), Anti-Tank Guided Missiles (ATGMs), Underwater weapon Launchers, CounterMeasures Dispensing System (CMOS), and Test Equipment.
 
The company is engaged in the business of refurbishment and life extension of stored and deployed missiles. It is also the sole manufacturer for SAMs, torpedoes, and ATGMs in India.
 
At the end of the September quarter of the current financial year, Bharat Dynamics had an order book worth Rs 18,852 crore with orders worth Rs 20,000 crore in the pipeline for the next two-three years.
 
Financially, Bharat Dynamics earned a revenue of Rs 735.9 crore during the first half of the current financial year (H1FY25) as compared to Rs 913.5 crore in the corresponding period of the previous fiscal.
 
Its net profit for H1FY25 was Rs 129.8 crore as against Rs 188.9 crore Y-o-Y. Its Ebitda, too, slipped during the period from Rs 101.4 crore to Rs 46.5 crore.
 
Rating agency CRISIL has reaffirmed its rating for the company’s various financial instruments. CRISIL has reaffirmed its ‘CRISIL A+’ rating to the company’s Bank Guarantee worth Rs 250 crore towards Union Bank of India (UBI); Rs 65-crore Bank Guarantee for State Bank of India (SBI); Rs 150-crore Letter of Credit (LoC)towards UBI; and Rs 135-crore LoC towards SBI.
 
Thus far in the month of January, Bharat Dynamics share price has gained barely 0.9 per cent on the bourses. In the calendar year 2024, the stock had climbed 31.1 per cent. By comparison, the Sensex and Nifty indices added around 8 per cent each in CY24, and have declined about 2 per cent so far in 2025.
 

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First Published: Jan 16 2025 | 1:33 PM IST

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