Shares of Bharat Dynamics (BDL) hit a new high of Rs 507.80, up 5% on the BSE in intraday trade on Monday before the budget. Shares in state-owned defense companies have risen 27% in the past three weeks, while the S&P BSE Sensex has lost 4%.
At 09:48 am; BDL was trading 3% higher at Rs 501, while the benchmark index rose 1.4%. A total of 232,000 shares changed hands over the counters of the NSE and BSE.
BDL is an Anti-Tank Missile (ATGM) company that has been involved in underwater weapon systems and air-to-air missiles and related equipment. It is India’s only supplier of surface-to-air missiles, torpedoes and anti-tank missiles. It is the primary integrator of the Army’s Akash weapons systems. BDL has also designed and developed the Countermeasures Distribution System (CMDS) for the Indian Armed Forces (IAF).
The company said that as of December 1, 2021, the total BDL order book was Rs 9,293 crore, with key new orders in the pipeline worth Rs 1,500 crore. On December 2, the company signed a contract with the Indian Army for the refurbishment of IGLA-1M missiles worth Rs 471.41 crore.
BDL is the perfect proxy for pre-budget PSU themes. The stock produced a multi-year breakout on the back of rising volume, signaling the start of a new bull market phase. As a result, ICICI Securities said in its budget top picks that it offers new entry opportunities to ride the next long-term rally.
BDL has been working with DRDOs and foreign original equipment manufacturers (OEMs) to manufacture and supply a wide range of missiles and allied equipment to the Indian Armed Forces. The brokerage said the company has a strong opportunity to expand its order book to Rs 23,000-25,000 crore in the next two to three years.
In FY21, BDL achieved revenue of Rs 1,914 crore at the same run rate. Revenue visibility is about four years. With DAC approved platforms including SAM (Akash) and ATGM (Astra), the increase in orders is very evident with a target price of Rs 548 on the stock.
Complete News Source : Business Standard
