Strong order book guidance from Bharat Dynamics, stock positive
The defence PSU's order book in FY19 and Q1FY20 is hinting very positive sentiments for the next few quarters. Hyderabad-based public sector enterprise, Bharat Dynamics can be expected to see in hand order size of around Rs. 25,000 crore till FY23.
Defence ministry undertaking, Bharat Dynamics Ltd (BDL) already has orders worth over Rs. 8,000 crore as of FY19. It further expects the order book to reach as high as Rs. 25,000 crore over the next three to four years. The key driver for strong order inflow due to strong long-term defence engagements.
The company is in the process of setting up of a facility in Amaravati of Maharashtra state for which it has plans to invest about Rs. 300 crore. It has made land acquisitions and received clearances for the facility.
Bharat Dynamics is engaged in the manufacture of second-generation missile systems with further steps on the third generation range on the cards. In addition to its engagements with the DRDO for co-development of QR SAM, Akash 1S, Akash NG, ASTRA and Sonobuoys, it is in talks with various players in the defence industry to work on new technologies. It has partnered with Thales, UK for Starstreak missiles.
At 11.15 am, on Wednesday, the stock traded higher by 3.10 per cent at Rs. 304 per share on BSE.