In a significant development for Bharat Dynamics Limited (BDL), the state-owned aerospace and defence company is poised to strike a major deal with Brazil for the sale of the Akash Missile System. Sources indicate that this transaction could be valued between ₹8,000 to ₹10,000 crore.
Key Highlights:
- Brazil’s Interest in Akash Missile System:
- A technical team from Brazil recently visited India to evaluate the Akash Missile System.
- The team observed the system in action and was impressed by its accuracy, with an error margin of only 2-3%.
- Previous Sales and Government-to-Government Deal:
- This would be a government-to-government (G2G) deal.
- India has previously sold the Akash Missile System to Armenia, showcasing its reliability and effectiveness.
- Brazil and India are expected to discuss financial bidding soon.
- Timeline and Significance:
- The entire process is anticipated to be completed within 8 months to a year.
- This deal is crucial for achieving India’s defence export target of ₹50,000 crore.
- Brazil is also considering purchasing other defence equipment from India, including the Scorpene-class submarines.
Bharat Dynamics Share Performance:
- Stock Performance:
- On Tuesday, Bharat Dynamics’ stock closed at ₹1,343.05, up by 0.19%.
- The stock’s 52-week high is ₹1,794.70, and its low is ₹450.50.
- The company’s market cap stands at ₹49,231.18 crore.
- Recent Trends:
- The stock has seen a minor dip of over 3% in the past week.
- However, it has surged by 41% in the last three months, 53% in the last six months, and over 56% year-to-date.
- Over the past year, the stock has risen by 130%, and by more than 225% over the past two years.
Akash Missile System: An Overview
The Akash Missile System is a surface-to-air missile system designed to intercept and destroy enemy aircraft at low, medium, and high altitudes. It has proven to be a highly reliable defence mechanism, bolstering India’s defence capabilities and now attracting international buyers.
Strategic Implications
This potential deal with Brazil not only strengthens bilateral relations between the two countries but also marks a significant step in India’s ambition to become a leading exporter of defence equipment. The successful completion of this deal could open doors for more international sales, enhancing India’s position in the global defence market.
