PSU defense stock jumps 3% after receiving ₹4,300 Cr order from Ministry of Defence

During Wednesday’s trading session, shares of one of India’s leading defence Public Sector Undertakings (PSUs) engaged in the manufacturing of guided missiles and allied defence equipments moved up by nearly 3.3 percent on BSE, after securing an order worth Rs. 4.362.23 crores from the Ministry of Defence.

Price Movement

With a market cap of Rs. 49,119.4 crores, at 01:39 p.m., the shares of Bharat Dynamics Limited were trading in the green at Rs. 1,340 on BSE, up by nearly 2 percent, as compared to its previous closing price of Rs. 1,315.15. The stock has delivered positive returns of nearly 55 percent in one year, as well as around 32 percent returns in the last one month.

What’s the News

According to the latest exchange filings, Bharat Dynamics Limited has signed a contract worth Rs. 4,362.23 crore with the Ministry of Defence for the supply of armaments to the Indian Armed Forces.

Previous Updates

16th January 2025: Bharat Dynamics Limited signed a contract worth Rs. 2,960 crore with the Ministry of Defence for the supply of Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy.

Also read: Adani Ports, HDFC & 8 other stocks to buy now for an upside potential of up to 38%; Do you own any?

Order Book

The total order book of Bharat Dynamics as of 1st April 2024 stood at Rs. 19,434 crores, while by 30th September 2024, the order book stood at Rs. 18,852 crores. In FY25, the company secured new orders worth Rs. 154 crores.

The company’s export order position reached nearly Rs. 2,445 crores as of September 30, 2024. Additionally, the orders in the pipeline for the next 2-3 years are estimated to be around Rs. 20,000 crores.

The company is concentrating on strengthening its indigenous production capabilities and expanding its export portfolio, with a clear growth strategy fueled by new defence contracts and strategic investments.

Financial Performance

Bharat Dynamics reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 38.2 percent, rising from Rs. 602 crores in Q3 FY24 to Rs. 832 crores in Q3 FY25. Similarly, during the same period, the company’s net profit increased from Rs. 135 crores to Rs. 147 crores, representing a significant growth of around 9 percent YoY.

About the Company

Bharat Dynamics Limited (BDL), a Government of India Enterprise under the Ministry of Defence, is engaged in the business of manufacturing Missiles and allied Defence Equipments. It provides a majority of its goods and services to the Indian Armed Forces and the Government of India. 

The company has three manufacturing units, located at Kanchanbagh (Hyderabad) in Telangana State, Bhanur (Sangareddy District) in Telangana State and Visakhapatnam in Andhra Pradesh. BDL is in the process of setting up additional facilities at Amaravati (Maharashtra), lbrahimpatnam (Telangana) and Jhansi (Uttar Pradesh).

Written by Shivani Singh

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post PSU defense stock jumps 3% after receiving ₹4,300 Cr order from Ministry of Defence appeared first on Trade Brains.