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Bharat Dynamics rallies 6%, hits new high on strong growth outlook

The company expects an order book Rs 25,000 crore in the next 2 years

Buzzing stocks | Bharat Dynamics | Markets

SI Reporter  |  Mumbai 

Defence Procurement

Shares of (BDL) hit a new high of Rs 976.35 on the BSE on Monday as they rallied 6 per cent in the intra-day trade on strong growth outlook. The company expects an order book Rs 25,000 crore in the next 2 years.

The stock of the state-owned defence company was quoting higher for a sixth straight day, having surged 20 per cent during the period. In comparison, the S&P BSE Sensex was down 0.27 per cent at 58,680 points at 09:21 AM. In the past one year, BDL's stock price has more-than-doubled or has zoomed 140 per cent, as against 0.53 per cent decline in the benchmark Sensex.

BDL is engaged in the manufacturing of Missiles and allied Defence Equipments. The company provides majority of its goods and services to the Indian Armed forces and the government. As on May 26, 2022, the company’s gross order book position was around Rs 13,140 crore.

In its FY22 annual report, BDL said the company will witness a high growth in the coming years "The order book position is picking up and we are further able to consolidate our orders which are in various stages of finalization. We expect an order book Rs 25,000 crore in the next 2 years," BDL said.

Restriction Imposed by the government in terms of negative list of imports in different phases has opened up an opportunity to get continuous orders for these products from the Indian Armed Forces in the ensuing years which will help to sustain the BDL order book as well as further growth of the Company.

In the export market, there is an interest for BDL's product like Akash weapon Systems from potential buyers. BDL is in the process of converting the leads received into orders. In order to further consolidate the order book of the company, there is a huge emphasis by BDL on the necessity of realizing export order and the company is pursuing the same aggressively.

"Given the immense potential of BDL products for exports, the company aims to expand its foot prints in the global market. BDL has already made forays into the Export Market by exporting the Light Weight Torpedoes 10 a friendly foreign country, The 'ease of doing business' environment ushered by the Government has opened up a plethora of opportunities for the Company to export its exportable products to friendly countries. BOL has already received several leads from friendly countries to export its products," the company said.

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First Published: Mon, September 19 2022. 09:46 IST