Shares of this large-cap Navratna CPSE company jumped approximately 2 percent in Wednesday’s trading session after the company secured an order worth Rs 2,167.47 crores. In the past six months, the company’s stock has gained nearly 40 percent for its stakeholders.
With a market capitalization of Rs 1.31 lakh crores, the stocks of Bharat Electronics Limited (BEL) started their trading session on Wednesday at Rs 177.50 and currently trade at Rs 179.70, gaining around 2 percent compared to the previous closing levels of Rs 176.45 apiece.
Such bullish stock price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about the receipt of an order from the Indian Navy.
The Navratna company signed a contract with the Indian Navy worth Rs 2,167.47 crores to supply state-the-art ‘Electronic Warfare’ (EW) for use on-board warships. The EW systems are indigenously designed and developed.
In addition, the company also received additional orders worth Rs 114.59 Crs since the last disclosure as of 30th January 2024 and these same pertain to the supply of HD VLF receivers, SDRs, EVMs, etc. With the abovementioned order, BEL has cumulatively received orders worth Rs 30,776.06 crores in the current financial year.
During the recent financial quarters, the company reported a jump in numbers as far as the operating revenues and after-tax profits are concerned. The former rose from Rs 4,009 crores during Q2FY24 to Rs 4,162 crores during Q3FY24, and the latter, keeping the timeframe the same, increased from Rs 780 crores to Rs 848 crores.
Historically, the company has maintained decent return tattoos with the return on equity (RoE) reported at 21.53 percent and the return on capital employed (RoCE) reported at 26.38 percent.
As per the recent presentations, the company expects orders worth Rs 50,000 crores in the coming two years. Moreover, the company, during the same timeframe, plans to spend around Rs 700 to Rs 800 crores in capital expenditure (Capex).
Founded in 1954, Bharat Electronics Limited, a Navratna CPSE company owned by the Government of India, is an aerospace and defense company manufacturing a wide range of specialized electronics for defense and civilian use.
Written by Amit Madnani
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