On Wednesday, Bharat Dynamics (BDL) shares surged 5% to Rs 984.50 in intraday trade on a strong business outlook. The stock has risen 23% in the past two weeks after the state-owned aerospace and defence company said it received export orders worth $255 million. The order will be implemented after government approval.

Meanwhile, BDL signed 10 Memorandums of Understanding (MoUs) with various foreign and Indian companies during Aero 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, BDL has signed an MoU with AL TARIQ, UAE, an EDGE Group entity, to produce all-weather, day/night jointly, long-range precision-guided munitions (LR-PGM) kits in India.

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

BDL is one of the leading Defence PSUs in India, engaged in the manufacture and testing equipment of Surface-to-Air Missiles (SAM), Anti-Tank Guided Missiles (ATGM), Air-to-Air Missiles (AAM), Underwater Weapons, Launchers, Countermeasures and Test Equipment.

Analysts at ICICI Securities have a ‘buy’ call on BDL with a target price of Rs 1,010 per share. The brokerage said the order book of Rs 11,906 crore provides strong revenue visibility.

In Q3FY23, BDL’s revenue fell 42.6% YoY and 13.7% QoQ to Rs 461.6 crore due to weak execution. Ebitda margin also contracted 1,674 basis points year-on-year to 19.3% due to a sharp rise in other costs. Meanwhile, profit after tax fell 61.1% year-on-year to Rs 83.7 crore.

The stock has risen 116% over the past year, compared with a 5.5% gain for the S&P BSE Sensex. It hit an all-time high of Rs 1,026 on October 27, 2022.