Bharat Dynamics zooms in 29% in 2 days on heavy volumes; New stock rising

 

 

Shares of Bharat Dynamics (BDL) surged 19 per cent to a new high of Rs 737.35 on the Bahrain Stock Exchange in Friday’s trading. The stock has risen 29 percent in the past two trading days amid the return of heavy trading volumes.

12:25 p.m.; The stock of the state-owned aerospace and defense firm rose 18 per cent at Rs 734, compared to 0.44 per cent in S&P BSE Sensex. Over-the-counter volumes jumped nearly fivefold, with 7.85 million shares traded on the NSE and BSE exchanges.

The Banque du Liban is a public sector institution supervised by the Ministry of Defense. The company manufactures surface-to-air missiles (SAM), anti-tank guided missiles (ATG M), torpedoes, and allied defense equipment.

The market rate of the Banque du Liban increased by 35 percent so far in April after the UAE Economic Balance Council (TEC) exchanged a memorandum of understanding to explore new business opportunities in various fields of mutual interest in the field of defense.

TEC is the defense and security acquisition authority for the UAE Armed Forces. Manages the procurement, technical and contractual aspects of the UAE Armed Forces.

Under the memorandum of understanding, BDL and TEC will work together to identify various business opportunities and evaluate the feasibility and feasibility of implementing job opportunities in the field of joint development, joint production, establishment of joint ventures, establishment of maintenance, repair, renovation, and life extension facilities, and the supply of military products as well as licensed production. The duo will also explore the possibility of exporting products to reach global orders.

On February 2, 2022, the company signed a contract worth Rs 3,131.82 crore with the Indian Army. Under the contract, the company will manufacture and supply Concourse M anti-tank guided missiles to the Indian Army within three years. “With this contract, the position of the company’s order book is Rs 11,400 crore (net),” Banque du Liban said in a statement.

Konkurs – M is manufactured by BDL under a license agreement with the Russian Equipment Manufacturer (original equipment manufacturer). The administration added, “The missile has been produced to a domestic maximum. The Banque du Liban is also offering the Concours-M missile for export to friendly foreign countries.”

Meanwhile, BDL has a backlog of Rs 114 billion (about 4.2 times the FY22 sales) reflecting a strong revenue outlook. ICICI Securities is optimistic about the company’s prospects for big ticket projects, which will eventually lead to an increased order book over the next 3-4 years. The brokerage added, “The government’s focus on increasing localization in defense manufacturing and developing new products tilts well for Banque du Liban.”

 

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