Share prices of this large-cap stock engaged in manufacturing specialised electronic equipment requirements of the Indian Defence Services moved up by 1.4 percent to Rs. 188.5 in the morning session on January 17th.
With a market cap of Rs. 1,35,706 crore, Bharat Electronics Ltd. (BEL) has given over 46 percent of returns in the past six months and nearly 81.21 percent in the last one year. So far, the company has given 0.62 percent of returns in 2024.
On January 17, Navratna DPSU Bharat Electronics Limited (BEL) secured two distinct orders amounting to Rs. 1,034.31 crore.
The first order, valued at Rs. 695 crore, includes the supply of spares related to the missile systems from Mazagon Dock Shipbuilders Ltd.
The second order worth Rs. 339.31 crore encompasses the supply of combat management system, composite communication system, transmit or receive modules, mobile autonomous stabilisation system and various other spares or services.
With this, BEL has received cumulative orders of Rs. 27,647.31 crore in the current financial year.
Financially, the company is almost debt-free and has been maintaining a healthy dividend payout of 45.4 percent, but it has delivered a poor sales growth of 11.3 percent over the last five years. Further, the company’s annual revenue growth of 15.48 percent outperformed its 3 year CAGR of 11.18 percent.
The company’s revenue from operations on a year-on-year basis grew just by 1.2 percent from Rs. 3,533 crore in June 2023 quarter to Rs. 4,009 crore in September 2023 quarter, accompanied by a net profit of Rs. 539 crore in June 2023 quarter to Rs. 790 crore in September 2023 quarter.
As of September 2023, FIIs hold 17.19 percent of the shares, whereas DIIs hold 24.19 percent of the shares in the company, aggregating to 41.38 percent of the institutional holdings.
Incorporated in 1954, Bharat Electronics Ltd. is a Navratna PSU under the Ministry of Defence to meet the specialised electronic needs of the Indian Defence.
It manufactures and supplies electronic equipment and systems for the Army, Navy and Air Force, and produces a wide range of equipment for areas like naval systems, weapon systems, telecom & broadcast systems, electronic warfare, radars and much more.
Written by Shivani Singh
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