Rs 5,900 Crore Order Book: Defence company and L3Harris Sign MOU to Collaborate on Advanced Technology in India
The stock is up by 6.3 per cent from its 52-week low of Rs 1,130.70 per share.
Kalyani Strategic Systems Limited (KSSL), a subsidiary of Bharat Forge Limited, and L3Harris Technologies have signed a Memorandum of Understanding (MOU) to collaborate on advanced defence and security equipment in India. This partnership aims to leverage the strengths of both companies to provide comprehensive solutions for the Indian defence market. The two-year agreement outlines joint efforts in areas crucial to modern warfare.
The MOU specifically targets opportunities within Command, Control, Communications, Intelligence, Surveillance, and Reconnaissance (C4ISR) technologies. This collaboration will allow L3Harris to expand its tactical communications network development in India, building upon its extensive global presence with over one million radios already deployed. KSSL’s local expertise and manufacturing capabilities will complement L3Harris's technological prowess.
This agreement aligns with the U.S.-India Defence Industrial Cooperation, which promotes collaboration on advanced defence technologies. The MOU establishes a framework for innovation and mutual benefit, focusing primarily on the Indian market. However, it also aims to create robust supply chains beyond India to fulfil global demands, ensuring a reliable source of critical equipment.
L3Harris has a long-standing presence in India, operating for over 21 years with facilities in New Delhi and Bengaluru. The company has a history of supplying the Indian Armed Forces with advanced tactical radios and electro-optical systems. Beyond defence, L3Harris also partners with the Airport Authority of India to provide futuristic telecommunications infrastructure for all Indian airports. KSSL, a pioneer in the Indian defence industry, has developed and exported various indigenous weapon platforms, mobility solutions, and high-technology military products.
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.
About the Company
Bharat Forge Limited (BFL), a Pune-based Indian multinational, is a technology-driven global leader in providing high-performance, innovative safety critical components and solutions for several sectors including automotive, power, oil and gas, construction & mining, rail, marine, defence and aerospace. BFL has a presence across 18 manufacturing locations in five countries with the largest repository of metallurgical knowledge and offers full-service supply capability to its geographically dispersed marquee customers from concept to product design, engineering, manufacturing, testing and validation.
The company has a market cap of over Rs 50,000 crore and has been maintaining a healthy dividend payout of 35 per cent. The company has an order book of Rs 5,900 crore as of September 30, 2024. The stock is up by 6.3 per cent from its 52-week low of Rs 1,130.70 per share. Investors should keep an eye on this defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.