Bharat Forge hits 52-week high on inking contract with Ministry of Defence

Bharat Forge shares rose 2.5 per cent and hit a 52-week high on BSE at ₹1,491.95 per share. The buying on the counter came after the company inked the largest small arms contract with the Ministry of Defence.

 

At 12:15 PM, Bharat Forge’s share price was trading 1.13 per cent higher at ₹1471.4 per share on BSE. In comparison, the BSE Sensex was up 0.46 per cent at 85,066.94.

 

The company has a total market capitalisation of ₹70,345.96 crore. Its 52-week low was at ₹919.10. Under the contract, Bharat Forge will supply 255,128 CQB Carbines (5.56 x 45 mm) to the Indian Army. The order is valued at ₹1,661.9 crore and has to be executed within five years. 

 

 

“The Indian MoD has awarded Bharat Forge Limited (BFL) a ₹1,661.9 crore contract for the supply of 255,128 CQB Carbines (5.56 x 45 mm) to the Indian Army,” the filing read. 

 

According to the filing, the 5.56 x 45 mm CQB Carbine is an indigenously designed, developed, and manufactured (IDDM) compact firearm jointly developed by Armament Research & Development Establishment (ARDE), DRDO and Bharat Forge Ltd., Pune. 

 

“Bharat Forge, and our wholly owned defence subsidiary Kalyani Strategic Systems Limited (KSSL), remain dedicated to equipping the Indian Armed Forces with ‘Made in India’ advanced defence equipment and platforms,” the filing read. 

 

Recently, analysts at Motilal Oswal said that they expect Bharat Forge (BHFC) to ride a multi-year expansion cycle led by its fast-growing defence and aerospace businesses, even as the brokerage remains cautious on the stock’s valuations and lingering weaknesses in commercial vehicle (CV) markets and overseas operations. 

 

In its note after meeting the company’s management, the brokerage highlighted that Bharat Forge's transition from a traditional forging major to a diversified defence and aerospace manufacturer is beginning to take firm shape, offering a more resilient growth runway ahead.

 

At the core of the bullish narrative is Bharat Forge’s swelling defence order book, now at nearly ₹114,000 crore and executable over the next three to four years. This, Motilal Oswal notes, places defence as the company’s most powerful growth driver in the medium term.