Shares of this large-cap defence company entered into an MoU with Aeronautical Development Agency

Shares surged after the company announced this development.

About the MoU 

For the Advanced Medium Combat Aircraft (AMCA) programme, Bharat Electronics (BEL) and the Aeronautical Development Agency (ADA), of the Defence Research and Development Organization (DRDO), have signed a Memorandum of Understanding (MoU). The Agreement was revealed at the Bandhan celebration at Aero India 2023.

The Advanced Medium Combat Aircraft is a multi-role, all-weather fighter aircraft of the fifth generation with a focus on high survivability and stealth. By working together, BEL and ADA will design, develop, qualify, produce, and provide Internal Weapon Bay Computers and other LRUs for AMCA and offer lifetime product support to the Indian Air Force. This Agreement intends to take use of the complementary strengths and skills of both companies.

Share price movement of Bharat Electronics Limited

Scrip opened today at Rs 95.80 and made its day high at Rs 96.20. The 52-week high of the stock is Rs 115, whereas the 52-week low was Rs 62.24. Promoters hold 67.50%, whereas institutional and non-institutional holdings are 3.76% and 28.73%, respectively. Presently, the market cap of the company is Rs 69,552.55 crore.

Company profile

Bharat Electronics (BEL) was founded in partnership with CSF, France (now Thales), to produce basic communication equipment. The company now produces a variety of cutting-edge equipment in fields like defence communication, radars, naval systems, C4I systems, weapon systems, homeland security, telecom & broadcast systems, electronic warfare, tank electronics, electro-optics, professional electronic components, and solar photovoltaic systems. BEL also offers maintenance services for the equipment it manufactures. BEL offers electronic voting machines, tablet computers, solar-powered traffic signal systems, and access control systems for the general public.