Bharat Dynamics’ share price jumped 12% in the last two trading days. It rose 7% to quote at an intra-day high of Rs 1,286.35 on Friday. It was up more than 8% to touch a high of Rs 1,229 on Thursday after it signed a pact worth Rs 2,960 crore with the Ministry of Defence. The stock was the top midcap gainer on the NSE and closed at Rs 1,201.45. It will supply Medium-Range Surface-to-Air Missiles (MRSAM) to the Indian Navy.
“The contract was inked by the officials of MoD and BDL in the presence of Defence Secretary Shri Rajesh Kumar Singh in New Delhi on January 16, 2025,” read a press release.
The MRSAM system is routinely installed on various Indian Naval Ships and is intended to be integrated into most of the future platforms slated for acquisition. The contract is an important step in strengthening India’s defence capabilities and developing advanced military technology locally.
Under the ‘Aatmanirbhar Bharat’ initiative, Bharat Dynamics will supply missiles that mostly use domestic materials. This falls under the ‘Buy (Indian)’ category. “The contract would generate employment of approx. 3.5 lakh mandays in the defence industry, including various MSMEs,” said the release.
Bharat Dynamics in Q2
The company’s net profit stood at Rs 122.53 crore in Q2FY25, a decline of 16.7% year-over-year. Its revenue from operations saw a decrease of 11.54%, coming to Rs 544.77 crore. However, its revenue grew by an impressive 184.97% quarter-on-quarter. The company’s net profit increased dramatically by 1597.98%, sequentially, indicating a strong recovery trend from the preceding quarter.
Bharat Dynamics Vs Nifty 50
The share price of Bharat Dynamics has risen by 2.6% in the last five trading days, calculated from Thursday’s closing price. However, the stock has fallen 6.7% in the last one month and 25% in the previous six months. The stock has given a return of 5.9% from year to date and 37.5% in the last one year.
To compare, the benchmark index, Nifty 50 has fallen 0.8% in the last five days. The index has fallen 5.5% in the last one month and 5% in the past six months. It has declined by 1.8% from year to date. However, it has risen more than 5.8% in the previous one year.
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