Bharat Dynamics Gets ₹809 Crore ATGM Order from AVNL – But Investors Still Waiting for Stock Rally
Bharat Dynamics gets 809 Crore mega defence order
Armoured Vehicles Nigam Limited (AVNL) has placed a huge order of over 800 crores with Bharat Dynamics Limited (BDL), a public sector defence business, In the Ministry of Defence. This is an order of supply of ATI Guided Missiles (ATGMs) and it shall be delivered within the next three years.
The new contract will also boost the order book of BDL which is already good. The company claimed that the national security concerns led to preservation of the technical details and terms of the deal as a secret. This is also a purely home deal which involves no foreign input.
According to BDL, this order would enhance its revenue predictability in the long term and its manufacturing capability. It is evidence of the belief in the potential of an indigenous defence industry in India.
History and details about Bharat Dynamics Limited
Bharat Dynamics Limited came into being in 1970. It is a Public Sector Undertaking (PSU) within the Ministry of Defence of India. The firm mostly deals with the production of missile systems and ammunition among other defence infrastructure to the Indian Armed Forces.
BDL Share Prices Performance-Waiting of Rally of Investors
The above giant order has not led to a sharp rally in the BDL stock. As of Friday, BDL was selling at 1658.80 with a decline of 39.00 or 2.30 percent as compared to its price on the last trading day.
- 52-week high: ₹2,096.00
- 52-week low: ₹897.15
As per the latest shareholding data:
- Shareholding of announcer: 74.93%
- Public owning: 25.07%
The enterprise has a market capitalization of more than 60,854 crores and it is also represented in BSE 500 Index.
BDL has produced high long term returns even though it experienced a decline recently:
- 3 year returns: More than 361%
- Half-year returns: 33% increment
- Return of 3 months: The gain of 17%
- 1-month fall: Around 8 %
- 2-week fall: About 10%
- 5-year return: An huge 772% increase
Also Read : Paras Defence Share Skyrocket 9% After Maharashtra Deal – Big Gains Ahead?
Final Words
The new upcoming order of 809 crore rupees of BDL by AVNL is a considerable growth in the defence industry of India. It further gives stability in the future revenue of BDL. The market is however yet to rally. The stock investors are yet to see a good breakout.
Bharat Dynamics is a major player with regular government support, good orders books and an agenda to manufacture indigenous defence products
