Bharat Forge up 6% from day's low on ₹6,300 crore defence ministry deal

Shares of Bharat Forge recovered nearly 6 per cent from the day's low after it said that it won a majority of the ₹6,900 crore defence ministry contract. 

 

Bharat Forge stock rose as much as 1.26 per cent during the day to ₹1,199 per share, after the shares initially lost over 4.4 per cent in trade. The stock was trading 0.8 per cent higher at ₹1,192.8 apiece, compared to a 0.05 per cent advance in Nifty 50 as of 12:18 PM. 

 

Shares of the company have fallen 9.3 per cent this year, compared to a 0.25 per cent fall in the benchmark Nifty 50. Bharat Forge has a total market capitalisation of ₹56,524.42 crore.

 

In an exchange filing on Thursday, the company said that it signed the largest domestic contract of 184 indigenously developed artillery systems with the Ministry of Defence, accounting to 60 per cent of the total ₹6,900 crore contract. The advanced towed artillery gun system jointly developed with the Defence Research and Development Organisation (DRDO) is the most advanced 155/52 mm calibre artillery system, it said in the statement.  

 

Along with Bharat Forge, the defence ministry on Wednesday signed a contract with Tata Advanced Systems for the procurement of 155mm/52 calibre advanced towed artillery gun systems and high-mobility vehicle 6x6 gun towing vehicles. In the financial year 2024-2025, total contracts worth ₹1.4 trillion have been signed by the defence ministry for capital procurement, according to a statement. 

 

Being the first major procurement of towed guns from the private sector by the Indian Army, the project will provide a boost to the Indian gun manufacturing industry in particular and the indigenous defence manufacturing eco-system as a whole, it said. "This project is a proud flag-bearers of Aatmnanirbhar Bharat by significantly contributing to employment generation and economic growth in consonance with the Make-in-India initiative." 

 

Bharat Forge is engaged in the manufacturing and selling of forged and machined components, including aluminium castings for the auto and industrial sectors. It operates manufacturing facilities at Mundhwa Baramati Chakan Satara and Nellore locations.

 

Bharat Forge reported a 16.38 per cent decline in consolidated net profit at ₹212.78 crore in the third quarter ended December 31, 2024, impacted by lower revenue. The company posted a profit of ₹254.45 crore in the third quarter last fiscal year. Revenue from operations in the quarter under review stood at ₹3,475.55 crore as against ₹3,866.4 crore in the corresponding period last fiscal.