Bharat Forge Bags ₹425 Crore Defence Order, Share Price Up 147% in 3 Years

Bharat Forge has received a ₹425 crore order from the Indian Ministry of Defence to supply marine gas turbine generators to the Indian Navy. This adds another order to its defence order book, driving the stock’s 60% gain over the past year.

Bharat Forge, one of India’s leading names in defence manufacturing, is back in the news after winning a new contract from the Ministry of Defence. The deal, worth ₹425 crore, adds another feather to a company that has steadily expanded its presence in India’s defence supply chain over the past several years. For shareholders, timing is also important, as the stock has already seen strong gains, and this order could maintain that momentum.

Under this contract, Bharat Forge is to supply 12 indigenously manufactured marine gas turbine generators, each rated at 1.25 megawatts, for use by the Indian Navy. Because the equipment is being manufactured domestically rather than imported, this order fits squarely into the government’s larger goal of self-reliance in defence production, often referred to as Atmanirbhar Bharat. For the Navy, this means access to local power generation units for its ships; for Bharat Forge, it means a substantial increase in its order book in a sector where competition for large contracts is intense.

Bharat Forge doesn’t just make components. The company handles design, engineering, testing, and production end-to-end, and supplies automobile manufacturers, aerospace firms, defence agencies, and industrial clients. This full-cycle capability is part of why it has been able to win increasingly difficult government contracts, rather than just small component orders.

This isn’t the company’s only major defence assignment. Bharat Forge previously secured a contract worth approximately ₹4,000 crore from the Indian government to supply 184 ATAGS artillery guns, a deal that already signaled the company’s growing presence in military hardware. The new ₹425 crore turbine order adds to that pipeline, rather than standing alone.

At its current market price of ₹2,041.40, Bharat Forge shares have gained 7% in the past month, 41% in six months, and 60% in the past year. Extrapolating this over three years, this gain reaches 147%. Since its listing on the stock market, the share price has increased by a whopping 11,835.43%, making it one of the most popular long-term money-making companies in the Indian market.

The company currently has a market capitalization of ₹97,652 crore. Its price-to-earnings ratio is 89.62, significantly higher than the industry average of 49.68, while its price-to-book ratio is 10.19. Return on equity is 11.27%, earnings per share (TTM) is ₹22.79, and debt-to-equity ratio is 0.76. The stock offers a modest dividend yield of 0.42%, with a book value of ₹200.38 and a face value of ₹2.

A higher P/E than the industry indicates that investors are already banking on continued order wins and earnings growth, which increases the company’s ability to deliver. The ₹425 crore turbine contract alone is not expected to make a significant difference to earnings, but combined with the ATAGS order and the company’s big defence targets, it further strengthens the narrative that has driven the stock’s sharp rise.