Bharat Electronics gain on pact with Thales Reliance Defence Systems

Bharat Electronics Ltd (BEL) shares gained more than a percent on March 1 following the announcement that the defence public sector undertaking had signed a pact with Thales Reliance Defence Systems (TRDS).

At 9:36am, shares of the company traded at 1.3 percent higher at Rs 95.85 on the BSE.

As part of the offset commitment under the Rafael-India Contract and in line with the ‘Make in India’ policy, BEL and TRDS have entered into a frame supply agreement at the Aero India 2023, for manufacturing and supply of TR Modules and Micro modules of Radar used in Rafael fighter aircraft, the defence company said in a regulatory filing.

In continuation to the agreement with TRDS, BEL has received an order to manufacture and supply Micro Modules, it added.

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TRDS was incorporated in June 2017 under the Indian Companies Act, 2013 and is a Joint Venture Company between Thales, France and Reliance Defence Ltd with the proposed shareholding of 49 percent and 51 percent, respectively.

The company had signed another pact with Goa Shipyard at Asia’s largest air show for co-operation in addressing global market opportunities for supply of products such as autonomous boats, and other systems and solutions based on Artificial Intelligence for Naval platforms.

The defence electronic company’s shares have given closer to 300 percent returns in the past three years. BEL shares have rallied around 75 percent between February and September last year, but since making a peak of Rs 115, they have been struggling for direction over the last six-odd months.

BEL designs, manufactures and supplies products and systems in a wide variety of fields, including radars, missile systems, military communications, naval systems, electronic warfare and avionics, C4I Systems, electro optics, tank electronics and gun/weapon system upgrades, and electronic fuzes in the defence segment.