Bharat Dynamics shares zoom on $255 million export order win

Bharat Dynamics, a leading manufacturer of missiles and allied defence equipment, has inked an export order worth $255 million (Rs 2,108.12). The announcement of the latest order win caused the company’s shares to pop by more than 5 percent on February 20.

At 12.18 pm, shares of Bharat Dynamics were trading at Rs 914, up 4.73 percent on the National Stock Exchange.

This new order is an addition to Bharat Dynamics’ heavy order book, with deals totalling Rs 11,906 crore as of November-end. While order inflows were slower than expected in the first nine months of the current financial year, brokerage firm ICICI Securities remains bullish about the company’s future prospects.

“We believe Bharat Dynamics is likely to benefit from a number of defence procurement opportunities in the pipeline,” ICICI Securities wrote in its report.

The positive sentiment for the stock has also been fueled by recent developments, including the signing of ten Memorandum of Understandings with foreign as well as Indian companies at the Aero India 2023 event- held last week. At the event, Bharat Dynamics showcased its largest-ever display of products, including missiles, radars, and other defence equipment.

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The agreements were signed with well-known names in the industry, such as Thales, Al Tariq, and Bultexpro, as well as domestic players like the Indian Institute of Technology-Madras and Tamil Nadu Industrial Development Corporation.

This export order win, along with the recent developments, have helped improve the company’s order visibility. This apart, the stock is also trading ex-dividend today. The company’s board approved for an interim dividend payout of Rs 8.15 for the current financial year.

With the defence sector poised for significant growth in India, analysts believe Bharat Dynamics is well-positioned to benefit from the opportunities that lie ahead.