Bharat Dynamics Inks Rs 2,000 Crore Deal To Supply Anti-Tank Missiles To Army

The Ministry of Defence on Thursday inked a contract with Bharat Dynamics Ltd. (BDL) worth Rs 2,095.70 crore. This was for the procurement of INVAR Anti-tank Missiles, under the 'Buy (Indian)' category, according to a PIB press release.

The contract was signed by senior officials of the Ministry of Defence and representatives of BDL in the presence of Defence Secretary Rajesh Kumar Singh at South Block, New Delhi on Thursday.

The procurement of the INVAR Anti-tank Missiles aims to enhance the firepower and lethality of Tank T-90, a mainstay of Armoured Regiments of the Indian Army.

The weapon system is a sophisticated laser-guided anti-tank missile with a very high hit probability. It is expected to transform the conduct of mechanised operations and offer operational advantage against adversaries.

"The procurement underscores the Government’s efforts to meet the operational requirements of the Indian Army by leveraging the existing expertise of Defence Public Sector Undertakings," the release said.

"Along with development of niche technologies by domestic industries towards achieving 'Aatmanirbharta' in defence," it added.

Shares of Bharat Dynamics closed 1.07% lower at Rs 1,517.90 apiece on the NSE, compared to a 0.01% rise in the benchmark Nifty. The stock had risen 55.01% in the last 12 months and 35.18% on a year-to-date basis.

Out of 12 analysts tracking the company, eight have a 'buy' rating on the stock, one recommends 'hold' and three suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 16.4%.