- 05 Nov 2024
- ICICI Securities
EMERGES AS LOWEST BIDDER IN ARTILLERY GUN TENDER
News: As per media sources, Bharat Forge has emerged as the lowest bidder (in financial terms) in the much-awaited tender/order of Advanced towed Artillery gun system (ATAGS) jointly developed by them with DRDO. The total order size in the initial phase for this order is pegged at ~₹ 7,000 crore for around 300 artillery guns. As per rules if this bid is matched by the second contended i.e. Tata Advance Systems, the tender will be split in the ratio of 60:40 i.e. Bharat forge getting 60% of the order while the rest by Tata group company.
Views: The outcome of this tender was much awaited with artillery gun order being one of the driving forces for Bharat Forge’s defence business. This is a positive development for the company and we await its final awarding as well as contours. With muted CV forging business outlook, the company has diversified well to stay ahead of the curve and report healthy profitable growth going forward.
Impact: Positive