The stock market has recorded a huge decline in the past week, but amid this slowdown, some companies’ stocks have done well in the market. Some such movements may be seen in the market next week as well. Especially, everyone’s eyes are on the shares of Bharat Forge, a major defense company. The main reason for this is a large order received by the company from the government, which is worth about Rs 425 crore.
This defense stock has proven to be a ‘multibagger’ for investors:
This defense company has rewarded its investors with bumper returns in the long term. On April 9, 2020, the price of one share of the company was just Rs 245. Last Friday (market closing), the price of this share increased and closed at Rs 2,036. During this period, investors have got a tremendous return of about 729 percent, that is, the investor’s money has increased more than 8 times. The domestic stock market has been in a bullish mood for the past six months. Bharat Forge’s market capitalization has now reached Rs 97,340 crore. The 52-week high is Rs 2,059.50, the 52-week low is Rs 1,100.50, and in the last six months, this stock has given about 40 percent return to its customers. Similarly, its return in the last five years is 180 percent.
Why is Bharat Forge shares in the news?
According to a PTI report, according to the information given by the company in the stock exchange filing, they have got a big contract for the Indian Navy from the Ministry of Defense. The main issue of the contract is to supply gas turbine generators for the Indian Navy, with a total value of Rs 425 crore. Bharat Forge has been given a five-year time frame to complete the contract. The company will manufacture 12 marine gas turbine generator sets of 1.25 MW capacity. The agreement was signed between the Ministry of Defence and Pune-based Bharat Forge Limited in New Delhi in the presence of Defence Secretary Rajesh Kumar Singh. Most importantly, at least 60 percent indigenous materials will be used in these generators, giving a boost to the ‘Make in India’ campaign. Market experts are predicting that Bharat Forge shares may go up further in the coming week after this big decision of the government.
