Shares of Bharat Dynamics Ltd (BDL) surged nearly 5% on December 24 after the government announced the successful completion of User Evaluation Trials (UET) of the Next Generation Akash missile system (Akash-NG) by the Defence Research and Development Organisation (DRDO).
The stock of the defence PSU rose to ₹1,496.7 per share in morning trade, marking its highest level in the past 12 trading sessions.
According to a press release issued on December 23, DRDO successfully carried out user evaluation trials of the Akash-NG system, during which the missile intercepted aerial targets across multiple scenarios. These included near-boundary, low-altitude engagements as well as long-range, high-altitude targets, demonstrating the system’s operational capability.
The Ministry of Defence stated that Akash-NG is equipped with an indigenous radio frequency (RF) seeker and powered by a solid rocket motor, making it a robust air defence solution against diverse aerial threats. The system, including the Multi-Function Radar (MFR), Command and Control Unit, and Missile Launch Vehicle, has been developed by DRDO laboratories with support from Indian industry partners. The trials were witnessed by senior DRDO scientists and representatives from the Indian Air Force (IAF).
Defence Minister Rajnath Singh congratulated DRDO, the IAF, and the domestic defence industry, noting that the advanced missile system would significantly strengthen India’s air defence capabilities. DRDO Chairman and Secretary, Department of Defence R&D, said the successful completion of the UET clears the path for induction of Akash-NG into the Indian armed forces.
The Akash-NG missile system has been designed by DRDO and is manufactured by Bharat Dynamics Ltd in collaboration with Bharat Electronics Ltd (BEL). BEL shares were trading marginally higher following the announcement.
In terms of stock performance, BDL shares have gained around 13% over the past five trading sessions, though they are down more than 19% over the last six months. On a year-to-date basis, the stock has risen over 31% and currently trades at a price-to-earnings (P/E) ratio of approximately 94.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice.
