Shares of Bharat Dynamics (BDL) hit a fresh high of Rs 976.35 on the BSE on Monday as they rose 6 percent on strong growth prospects in intraday trading. The company expects an order book of Rs 25,000 crore over the next two years.
Shares of the state defense contractor were higher for the sixth straight day after rising 20 percent during the period. In comparison, the S&P BSE Sensex lost 0.27 percent to 58,680 points at 9:21 a.m. Over the past year, BDL’s share price has more than doubled, or is up 140 percent, compared to a 0.53 percent decline in the benchmark Sensex.
BDL is engaged in the manufacture of missiles and related defense equipment. The company supplies the majority of its goods and services to the Indian Armed Forces and the Government. As of May 26, 2022, the company’s gross backlog stands at around Rs.13,140 crore.
In its annual report for fiscal year 2022, BDL said the company will see high growth in the coming years, with growth of 25,000 crore in the next 2 years,” BDL said.
The government-imposed restrictions on negative listings on imports at various stages have opened up an opportunity to receive continued orders for these products from the Indian Armed Forces in the years to come, which will help sustain the BDL order book as well as further growth of the company.
In the export market, there is interest from potential buyers in BDL products such as Akash weapon systems. BDL is in the process of converting the leads it has received into orders. In order to further consolidate the company’s order book, BDL attaches great importance to the need to fulfill export orders and the company is aggressively pursuing this.
“Given the immense export potential of BDL products, the company wants to expand its presence in the global market. BDL has already made forays into the export market by exporting the Light Torpedo 10 to a friendly foreign country. The business environment introduced by the government has opened up a wealth of opportunities for the company to export its exportable products to friendly countries. BOL has already received several hints from friendly countries to export its products,” the company said.