Bharat Dynamics shares traded marginally higher on Friday, a day after the public sector defence company signed a contract worth nearly Rs 1188 crore for supply of heavy weight torpedoes to the Indian Navy. Shares quoted at Rs 305.75, up by 0.68 percent on NSE at 11.53 am.
The contract was signed by N.P. Diwakar, Director (Technical), BDL and Nidhi Chhibber, Joint Secretary and Acquisition Manager (Maritime & Systems) in the Defence Ministry in New Delhi, according to an official statement.
The execution of contract will be in next 42 months. The weapon will be manufactured at BDL's Visakhapatnam Unit under collaboration with the Defence Research and Development Organisation (DRDO).
The heavy weight torpedo or the 'Varunastra' is a ship-launched, electrically propelled underwater weapon equipped with one of the most advanced automatic and remote controlled guidance systems. The weapon system uses its own intelligence in tracing the target, it added.
BDL shares have jumped over 10 percent so far this year since January, outperforming the BSE Sensex, which has risen 9.69 percent during the period.
The one year return on the PSU remains negative with the scrip correcting by 22.65 percent in the last one year. During the same period, the Sensex has gained over 11 percent.
Brokerage Nirmal Bang on May 20 in its report had rated it 'Buy' with a target price of Rs 343.
Bharat Dynamics attained its 52-week high price of Rs 407.45 on June 15 last year, while its 52-week low price of Rs 225 came on February 14 earlier this year.
Meanwhile, the NSE Nifty50 traded at 11845, down by 68.60 points, or 0.58 percent at 11.54 am. The BSE Sensex was down by 194.55 points, or 0.49 percent, to trade at 39,547.
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First Published: IST