- 19 Dec 2023
- ICICI Securities
Major deal between BDL & Armenia for Akash missiles is in final stages
BDL - 1583 Change: 91.70 (6.15 %)News: As per the news sources, Bharat Dynamics (BDL) has finalised a major deal with Armenia for 15 Akash Air Defence (AAD) systems with Radars, with the transaction estimated to be valued between Rs 5000-6000 crore. As per the news sources, Oman has also expressed interest in discussions with BDL for the AAD system.
Views: BDL is well positioned in terms of significant potential for export of its products (missiles, torpedoes & counter measure systems). During the recent trials, AAD system demonstrated its unique capability of engaging four ariel targets simultaneously at a range of 25 kms, making India the first country to have such capability. Company’s order backlog stood at Rs 20766 crore as of Sep-23 (9.6x TTM revenues) with orders pipeline remains very strong (both domestic and exports), providing strong growth visibility in the coming period. Bharat Electronics will also be the beneficiary as it is involved in supplying electronics systems like Rajendra PESA radar and other sub-systems.
Impact: Positive