Bharat Forge’s big deal
The dominance of defense sector companies is continuously increasing in the stock market. Kalyani Strategic Systems Limited (KSSL), the defense unit of the country’s well-known auto and engineering company Bharat Forge, has signed a very important agreement with the American giant AM General. This is the same American company which makes cars and military vehicles for the army there. Now both these companies will together create a mobile artillery gun system (cannon), which can be easily deployed in any corner of the world, even on rough roads and bad weather.
Important agreement signed in Paris, Indian technology will reach American Army
This historic partnership was sealed during the ‘Eurosatellite Defense Expo’ held in Paris, the capital of France. The main objective of this agreement is to provide 155mm mobile artillery gun platform to armies around the world. The most interesting thing is that AM General has also submitted a proposal for the ‘Mobile Tactical Canon’ (MTC) program of the US Army. Under this proposal, a new 155mm weapon system will be developed using Bharat Forge’s MArG (Mounted Artillery Gun) platform. If the US Army gives green signal to this project, then its delivery can also start from the year 2027. This will prove to be a huge milestone for India’s defense manufacturing capacity.
The enemy sitting 40 kilometers away was eliminated, the qualities of the cannon were unmatched.
Now let’s talk about the weapon which is at the center of this whole deal. A 52-calibre 155mm cannon has been used in the MArG platform. To reduce the sharp shock (recoil) during firing, very modern technology has been provided in it. Apart from this, it is equipped with an automated load-assist system, due to which the shells load faster, as well as a fire control system for accurate aiming in all weather conditions. The biggest feature of this cannon is its firepower. It can fire high-explosive shells that cause massive destruction at a distance of more than 40 kilometers. It can carry with itself more than 20 shells and the ammunition to fire them, which saves the army from the hassle of reloading again and again on the battlefield.
Company’s eyes on the worldwide market, veterans said big things
Top officials of both the companies have expressed happiness about this deal. Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge, believes that this partnership reflects the growing global confidence in their advanced technology. The company is emphasizing on making such weapons according to the needs of modern warfare which have proven their usefulness in the battlefield. At the same time, AM General President and CEO John Chadbourne has described this step as a big step towards increasing the military strength of friendly countries. He says that the company’s patented ‘Soft Recoil’ technology, when combined with KSSL’s platform, will provide a new and more effective capability to the armies on the battlefield. These companies are not only eyeing the American market, but they want to capitalize on the increasing demand for mobile artillery systems across the world.
What does it mean for investors, a look at the condition of the stock
As an investor, if you want to understand the impact of this news, then it becomes necessary to look at the performance of Bharat Forge shares. On June 18, the company’s shares closed at Rs 2,017.20 on the National Stock Exchange (NSE) with a slight decline of 0.85 percent. However, this stock has given excellent returns to long term investors. If we look at the data of the last one year, this stock has registered a strong growth of 43.32 percent, while in terms of total returns, it has given a profit of about 55 percent to the investors. At present the total market cap of Bharat Forge is Rs 96.67 thousand crore.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
