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Defence Stock News: Pune-based defence manufacturer Bharat Forge is expected to receive a major order from Armenia for 80 units of ATAGS (Advanced Towed Artillery Gun Systems), estimated to be worth around Rs 2,000 crore, according to market chatter. This comes on the back of an earlier successful delivery of 12 ATAGS to Armenia, further strengthening India’s defence export narrative under the ‘Make in India’ push.

The deal, expected to be closed within the next 8–12 months, will be executed via its defence arm Kalyani Strategic Systems, a wholly-owned subsidiary of Bharat Forge. The group is a key contributor to India’s indigenous artillery capability in partnership with DRDO, with its ATAGS capable of striking targets up to 48 kilometres.

As of March 31, 2025, Bharat Forge’s total order book stood at Rs 9,420 crore, of which defence orders made up a dominant share. In FY25 alone, the company secured fresh orders worth Rs 6,959 crore, with nearly 70 per cent coming from defence contracts. Notably, in Q4, Bharat Forge won orders worth Rs 4,343 crore, including Rs 3,417 crore for ATAGS alone.

Besides ATAGS, the Kalyani Group also manufactures a diverse range of combat-ready systems, including the Garuda 105_v2, MaRG 155-BR, and Bharat ULH gun systems, as well as protected mobility vehicles such as Kalyani M4, Mine Protected Vehicle, and Armoured Personnel Carrier.

Despite the order buzz, Bharat Forge shares closed at Rs 1,223 apiece on Wednesday, down 1.75 per cent. Analysts suggest the stock is in the oversold zone with technical support pegged around Rs 1,200, while resistance lies near Rs 1,270. A breakout above this could see the stock rally towards Rs 1,300 in the near term.

The stock has rebounded nearly 30 per cent from its April low of Rs 919, but still trades well below its 52-week high of Rs 1,770.

This potential Rs 2,000 crore order comes at a time when the government is pushing hard to position India as a global defence supplier, especially in high-tech artillery systems. A successful deal could not only further bolster Bharat Forge’s order pipeline but also give a sentiment boost to the stock, which remains a key beneficiary of the defence capex cycle.

Keep Bharat Forge on your watchlist. A confirmed mega-order from Armenia could act as a strong catalyst for the stock. With defence forming an increasing share of its business mix and robust traction in exports, the stock offers long-term re-rating potential.

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