By Malvika Gurung
Investing.com — Shares of the state-owned defence company Bharat Dynamics (NS:) (BDL) jumped 6% on Monday, recording a new lifetime high of Rs 979.1 apiece in the session.
The scrip has been on an upward streak for the past five consecutive days and has surged nearly 20% in the period, including Monday’s rally, aided by a strong growth outlook.
BDL is a PSU under the Ministry of Defence, Government of India, and manufactures guided missile systems and allied equipment for the Indian Armed Forces.
The multibagger defence stock has jumped a whopping 70.91% in the past six months and has zoomed over 140% so far in 2022. In the past year, the company has delivered returns of about 144%, far outperforming the headline index .
The company said in its 52nd annual report for 2021-22 that the order book position has been picking up well and it expects an order book of Rs 25,000 crore in the next 2 years.
Its gross order book position as on May 26, 2022, was nearly Rs 13,140 crore, stated a Business Standard report.
BDL has won a deal worth Rs 2,971 crore from the Indian government to supply ASTRA MK-I Beyond Visual Range (BVR) Air to Air Missile (AAM) and associated equipment for the Indian Air Force & Indian Navy.
“Defense sector is buzzing currently on the back of a strong order book, orders from GOI under the Ministry of Defense, technological advancements and requirements according to the geopolitical environment and export orders. This gives us visibility of up to 4-5 years as the country needs to match the international standards,” said Ashwin Patil of LKP Securities.