Bharat Forge’s shares soared on March 20 following a significant announcement from the Cabinet Committee for Security (CCS), which greenlit a ₹7,000 crore deal for the procurement of indigenous Advanced Towed Artillery Gun Systems (ATAGS). This pivotal decision underscores India’s commitment to enhancing its defense capabilities and achieving self-sufficiency in artillery production.
Major Defense Procurement Approved
The approval for the ATAGS, valued at approximately ₹7,000 crore, marks a crucial advancement in India’s defense sector. According to official statements, this initiative represents a vital step towards self-reliance in the manufacturing of artillery systems.
- Allocation Breakdown:
- 60% of the contract will be awarded to Bharat Forge.
- The remaining 40% will go to Tata Advanced Systems Limited.
On the back of this announcement, Bharat Forge experienced a nearly 6% surge in its stock price during intraday trading, peaking at ₹1201.55 on the BSE.
Understanding ATAGS
The Advanced Towed Artillery Gun System (ATAGS) is India’s first 155 mm artillery gun, developed with advanced technology to bolster the capabilities of the Indian Armed Forces. With a 52-calibre barrel, this towed artillery gun can engage targets at distances exceeding 40 km, delivering powerful explosive payloads.
Key features of the ATAGS include:
- Automated setup and targeting capabilities, significantly reducing crew workload.
- Enhanced firepower due to its larger calibre.
This deal not only signifies a leap in India’s defense manufacturing but also showcases the growing technological prowess in the sector.
A Step Towards Self-Reliance
The development of the ATAGS is a testament to the ‘Make in India’ initiative, showcasing a collaborative effort between the Defence Research and Development Organisation (DRDO) and various Indian private sector partners. Notably, over 65% of its components are sourced locally, including critical subsystems such as:
- Barrel
- Muzzle brake
- Breech mechanism
- Firing and recoil system
- Ammunition handling mechanism
This approach not only fortifies India’s defense industry but also reduces reliance on foreign imports, promoting a robust domestic manufacturing ecosystem.
Current Stock Performance
As of 3:18 PM, shares of Bharat Forge were trading at ₹1194.65, reflecting a 5.36% increase on the BSE. Over the past year, the stock has appreciated by 9.47%, and impressively, it has surged 297% over the last five years.
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