New Delhi:
Shares of ammunition and missile maker Bharat Dynamics will more than double by 2022, in line with India’s special focus and thrust to ramp up domestic defense production under the “Make in India” banner.
The Indian defense and aerospace manufacturing market is worth Rs 85,000 crore, with private investment of Rs 18,000 crores. The value of defense exports in 2020-21 was Rs 5,711 crore, and the center aims to increase investment to Rs 1 lakh crore by 2022 and Rs 5 lakh crore by 2047.
In line with that government’s aim, Bharat Dynamics’ stock is up 51.8 percent this year to Rs Rs 810.15 per share. The shares of the company closed at Rs 390.8 on December 31 last year.
Notably, the defense manufacturer achieved a 108 percent return for its investors in 2022, with the company’s market cap jumping to Rs 14,848 crore, on the BSE.
That’s despite domestic stock indices plummeting over the past month amid inflation concerns and subsequent monetary policy measures from the Reserve Bank of India.
In fact, India’s benchmark stock indices extended their fall to their lowest point in more than a year, marking their sixth consecutive session on Friday, their worst week in more than two years, tracking world stocks this week headed for their weakest performance since the pandemic collapse of the markets in March 2020.
But shares of Bharat Dynamics, headquartered in Hyderabad and founded in 1970 as a public sector venture under the Ministry of Defense to become the manufacturing base for guided missile systems and allied equipment for the armed forces, have managed to sail on despite those risks. .
Earlier this month, the Defense Acquisition Council (DAC), led by Rajnath Singh, approved capital raising proposals worth Rs 76,390 crore for the armed forces.
It is believed that this new acquisition will significantly boost the Indian defense industry including Bharat Dynamics and significantly reduce foreign spending.
Separately, the company recently signed a contract worth Rs 2,971 crore with the Ministry of Defense to supply ASTRA MK-I Beyond Visual Range (BVR) Air to Air Missile and related types of equipment to the Indian Air Force and Indian Navy.
That, too, likely boosted the company’s stock prices.