Shares of automobile component manufacturer surged as much as 3.1% to hit a 52-week high of ₹1,142.50, a day after the Pune-based manufacturer received orders from UAE-based Paramount for the development and production of the global armoured vehicles via its subsidiary Kalyani Strategic Systems.
During the session on Friday, the scrip opened higher at ₹1,133.75 as against the closing price of the previous session at ₹1,107.90. At 12:26 pm, the shares of Bharat Forge were trading 1.22% higher at ₹1,121.45. At present, the share price of the auto component manufacturer is trading 68.5% higher than the 52-week low of ₹677.85, which the company touched on September 29 last year. During the session on Friday, the company market capitalisation stood at ₹52,222.23 crore with 35,564 shares exchanging hands on the BSE as against the two-week average of 0.37 lakh shares.
According to the company, the partnership has already resulted in the development and production of large volumes of locally-made KM4 armoured vehicles for the Indian army. The partnership was announced at the London-based Defense and Security Equipment International Conference (DSEI 2023).
"The companies are looking to leverage the strong industrial capabilities and engineering excellence of the Kalyani Strategic Systems to develop and manufacture armoured vehicles for Paramount’s global customers, in step with Paramount’s continued global expansion and production strategy," says Bharat Forge.
The partnership will result in the development and production of 4x4 and 6x6 Infantry Combat Vehicles for Paramount’s customers globally.
"This continuing and growing partnership with Paramount substantiates the fact that the world considers India to be ready to be “the manufacturing capital” for the global defence industry. We are committed to taking this successful partnership to further greater heights, supporting the ability of Paramount to serve its global customers," says Neelesh Tungar, President-Defence, Bharat Forge Ltd.
Notably, last month, Kalyani Strategic Systems bagged two export orders worth ₹850 crore from friendly countries for the supply of components and armoured vehicle chassis. According to the company, the order will be supplied over the period of 18 months time frame and is subject to necessary government approvals.
Earlier this year, the Pune-headquartered company decided to house all its defence-related investments under Kalyani Strategic Systems Limited (KSSL) for a better strategic alignment.
In the April to June quarter this year, the profit of the company surged as much as 34% year-on-year (YoY) to ₹213.73 crore as against ₹160.37 crore in the same period last year. The company’s revenue from operations stood at ₹3,877.27 crore, up 40% during the quarter under review, as against ₹2,851.46 crore in the same period last year. The board has also approved the conversion of existing intercorporate deposits to its subsidiary Kalyani Powertrain Limited, amounting to ₹111.3 crore into equity shares, to reduce the overall borrowings at Kalyani Powertrain. The company has also approved further investment of ₹150 crore in the subsidiary in one or more tranches. KTPL houses all the electronic vehicle initiatives of the company.
