Bharat Dynamics, a leading missile and allied defence equipment manufacturer, has signed an export order worth $255 million (Rs 2,108.12 crore). On February 20, the announcement of the latest order sent the company’s stock soaring more than 5%.

Shares of Bharat Dynamics were trading at Rs 914, up 4.73%, at 12:18 pm on the National Stock Exchange.

This new order is in addition to a large order book from Bharat Dynamics, with a total transaction value of Rs 11,906 crore as of end-November. Brokerage firm ICICI Securities remains bullish on the company’s future prospects despite a slower-than-expected pace of order inflows in the first nine months of the financial year.

Positive sentiment on the stock was also driven by recent developments, including signing ten memorandums of understanding with foreign and Indian companies at the Aero India 2023 event last week. Bharat Dynamics showcased its largest-ever product display at the event, including missiles, radars and other defence equipment.

These agreements were signed with big names in the industry, such as Thales, Al Tariq and Bultexpro, and domestic players, such as the Indian Institute of Technology Madras and the Tamil Nadu Industrial Development Corporation.

This export order win and recent developments have helped to increase the company’s order visibility. Beyond that, the stock is also trading ex-dividend today. The company’s board of directors approved an interim dividend of Rs 8.15 for the current financial year.

With India’s defence sector expected to witness significant growth, analysts believe Bharat Dynamics is well-positioned to benefit from the opportunities ahead.