Bharat Dynamics shares surged almost 5% on December 24 after the government announced that the Akash‑NG missile trial was a success.
What happened?
The Defence Research and Development Organisation (DRDO) finished the User Evaluation Trials (UET) for the next‑generation Akash‑NG air‑defence system. During the tests, the missiles hit aerial targets at both low‑altitude, near‑border ranges and high‑altitude, long‑range distances.
Why it matters for investors
- The successful trial clears a major hurdle before the missile can be inducted into the Indian armed forces.
- Bharat Dynamics, the main manufacturer, saw its share price rise to ₹1,496.70, the highest in 12 trading sessions.
- In the past five days, BDL’s stock jumped 13%, though it has fallen more than 19% over the last six months. So far in 2025, the stock is up about 31%.
- The company currently trades at a high price‑to‑earnings ratio of roughly 94, indicating strong market expectations.
Broader defence sector impact
The Akash‑NG system is designed by DRDO and built by Bharat Dynamics and Bharat Electronics (BEL). While BEL’s shares moved only slightly higher, the overall defence sector got a boost from the positive news.
What to watch next
With the trial cleared, the next step is formal induction of Akash‑NG into the Indian Air Force. Successful deployment could lead to more orders and potentially higher earnings for Bharat Dynamics.
Disclaimer
Remember, this is just an overview and not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.