Bharat Dynamics Limited (BDL) Shares rose 11% to Rs 884.15 in intraday trade on Thursday after the state-owned aerospace and defence company said it had signed 10 memorandums of understanding (MoUs) with several foreign and Indian companies at Air India 2023.

BDL has signed an MoU with Thales to establish a manufacturing facility for laser-guided rockets and their major components in India. In addition to the above, BDL has also signed an MoU with AL TARIQ, UAE, an entity of the EDGE Group, to jointly produce all-weather, day-night, long-range precision-guided munitions (LR-PGM) kits in India.

Additionally, during Aero India 2023, BDL launched three new products; Vertical Launch Short Range Surface-to-Air Missile (VLSRSAM), Semi-Active Laser Seeker Anti-Tank Guided Missile (SALS ATGM) for BMP-II and Drone throwing missiles (JISHNU).

The VLSRSAM is a next-generation shipborne all-weather air defence weapon that the Navy could use as a rapid-reaction point defence against supersonic sea-skimming targets such as aircraft and drones. The SALS ATGM, a subsonic missile with a range of 4,000 meters and a flight time of 25 seconds, will target moving and stationary tanks and infantry fighting vehicles.

JISHNU, on the other hand, is a lightweight drone missile with a range of 1.5 kilometres and a flight time of 9 seconds.

DRDO has jointly developed the VLSRSAM with BDL as production partners, and a large order to BDL is expected. Analysts said these new missiles and others in development are expected to boost BDL’s order flow in the long term.

BDL was quoted 9% higher at Rs 875.25 at 12:34 pm, while the S&P BSE Sensex gained 0.28%. However, the stock has underperformed the market over the past month, with shares down 6% compared with a 2.3% gain for the benchmark index.

That aside, it has lost 9% over the past three months, compared with a drop of less than 1% for the S&P BSE Sensex.