Bharat Dynamics Shares Gain Close To 8% On Inking Contract With MoD

Shares of Bharat Dynamics in intra-day trade on Wednesday (June 1, 2022) gained close to 8% at day's high price of Rs. 844.70 per share.

Bharat Dynamics (BDL) has signed a contract worth Rs. 2971 crore with Ministry of Defence for supply of ASTRA MK-I Beyond Visual Range (BVR) Air to Air Missile and associates equipments to Indian Air Force & Indian Navy. Transfer of Technology (ToT) from DRDO to BDL has been completed and now these missiles will be manufactured indigenously.

According to the MoD, these missiles will be economically superior to many such imported missile systems and will be integrated on fighter aircrafts like Sukhoi- 30 MKI, Tejas and MiG 29K. We believe this specific contract is only for about 200 missiles. The indigenous manufacturing of these missiles creates a huge opportunity for BDL considering the large fleet of existing and upcoming combat aircrafts. BDL has a strong order book at Rs. 14300
crore (~5x FY22 revenues) after this contract .

The same is viewed positive by the brokerage firm.