The Ministry of Defence (MoD) has entered into a ₹2,960 crore agreement with Bharat Dynamics Limited (BDL) to supply Medium-Range Surface-to-Air Missiles (MRSAM) for the Indian Navy. The contract was signed in New Delhi in the presence of Defence Secretary Shri Rajesh Kumar Singh, underscoring a significant step in India’s ongoing defence modernisation efforts.
The MRSAM system is a critical addition to the Indian Navy’s arsenal, serving as a standard feature onboard multiple naval ships. Designed to enhance the Navy’s defensive capabilities, the system is slated to be deployed across a majority of future naval platforms planned for acquisition. This agreement is a pivotal milestone in strengthening India’s maritime security infrastructure.
Aligned with the government’s ‘Aatmanirbhar Bharat’ initiative, the contract will see BDL delivering the MRSAMs under the ‘Buy (Indian)’ category, ensuring significant indigenous content in the manufacturing process. This move highlights India’s commitment to reducing reliance on imports and fostering self-reliance in advanced military technology.
The contract is expected to have a substantial economic impact, generating approximately 3.5 lakh man-days of employment within the defence industry. The production will also benefit numerous Micro, Small, and Medium Enterprises (MSMEs), reinforcing the domestic defence manufacturing ecosystem.
The deal comes as a part of broader efforts to modernise India’s defence forces and enhance indigenous production capabilities. By equipping the Navy with state-of-the-art MRSAM systems, the MoD aims to ensure robust defence mechanisms for the nation’s maritime domain.
On January 16, 2025, Bharat Dynamics Limited share price traded up by 5.47% at 2:25 PM (IST) at ₹1,195.65, while the BSE benchmark Sensex gained 236.33 points to 76,960.41. Bharat Dynamics’ share price reached a 52-week high of 1,794.70 on July 05, 2024, and a 52-week low of ₹776.08 on March 03, 2024. As per BSE, the total traded volume for the stock stood at 0.47 lakh shares with a turnover of ₹5.64 crore.
At the current price, Bharat Dynamics Limited shares are trading at a price-to-earnings (P/E) ratio of 79.21x, based on its trailing 12-month earnings per share (EPS) of ₹15.10, and a price-to-book (P/B) ratio of 11.75, according to exchange data.
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Published on: Jan 16, 2025, 3:29 PM IST
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