Shares of Bharat Forge Ltd. rose on Thursday, after the Cabinet Committee on Security approved the purchase of advanced towed artillery gun systems worth Rs 7,000 crore.
ATAGS is the first indigenously designed and manufactured 155 mm artillery gun. The weapon is set to enhance the operational capabilities of the Indian Armed Forces.
The Defence Research & Development Organisation and private industry partners in India will collaborate to execute the ATAGS order.
On Wednesday, Garden Reach Shipbuilders Ltd., Mazagon Dock Shipbuilders Ltd., Bharat Dynamics, along with others rallied up to 19% on the back of renewed interest in the sector on a potential India-US bilateral trade deal and Germany’s recent boost to defence spending.
Further, Hindustan Aeronautics Ltd., a key player in the defence space, is set to achieve a significant milestone in the Light Combat Aircraft Tejas programme, as its Nashik plant is ready to roll out the first Tejas MK1A from its newly established third production line.
Shares of Bharat Forge jumped over 5% following the announcement.
Bharat Forge Share Price
Bharat Forge stock rose as much as 5.81% during the day to Rs 1,202 apiece on the NSE. It was trading 5.44% higher at Rs 1,198 apiece, compared to a 1.32% advance in the benchmark Nifty 50 as of 2:31 p.m.
It has risen 9.71% in the last 12 months, but was down 7.80% on a year-to-date basis. Total traded volume so far in the day stood at 2.5 times its 30-day average. Relative strength index was at 57.7.
Fifteen out of 26 analysts tracking the company have a 'buy' rating on the stock, four recommend a 'hold' and seven suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 1,201, implying an upside of 0.8%.
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