- 01 Jun 2022
- ICICIdirect Research
BHARAT DYNAMICS BAGS NEW CONTRACT
BDL - 1200 Change: -12.05 (-0.99 %)News: Bharat Dynamics (BDL) has signed a contract worth Rs 2971 crore with Ministry of Defence for supply of ASTRA MK-I Beyond Visual Range (BVR) Air to Air Missile and associates equipments to Indian Air Force & Indian Navy. Transfer of Technology (ToT) from DRDO to BDL has been completed and now these missiles will be manufactured indigenously.
Views: According to the MoD, these missiles will be economically superior to many such imported missile systems and will be integrated on fighter aircrafts like Sukhoi-30 MKI, Tejas and MiG 29K. We believe this specific contract is only for about 200 missiles. The indigenous manufacturing of these missiles creates a huge opportunity for BDL considering the large fleet of existing and upcoming combat aircrafts. BDL has a strong order book at ~Rs 14300 crore (~5x FY22 revenues) after this contract.
Impact: Positive