Bharat Electronics Ltd (BEL), a Navratna PSU company informed the exchanges that it has won orders worth ₹ 4,300 crores from the Indian Army and the Indian Navy.
The Ministry of Defence has signed a contract worth ₹ 3000 crores with BEL for the supply of integrated electronic warfare systems for the Indian Army. These are indigenously developed and manufactured by BEL based on Defence Electronics Research Laboratory (DLRL), DRDO design.
Further, Bharat Electronics Ltd has also received several contracts worth ₹ 1300 crores from the Indian Navy for the supply of indigenously developed fire control, gun fire control, surveillance tracking, ESM, sonar systems and so on.
Last week the company signed two contracts worth ₹ 3800 crores with the Ministry of Defence for the supply of medium power radar and digital radar warning receivers for the Indian Air Force.
The company’s total order inflow was approximately ₹ 12,000 crores in FY 23, against the management’s full-year guidance of ₹ 20,000 crores. According to ICICI Direct, the company’s current order backlog is estimated at around ₹ 54,000 crores which is 3.1 times trailing twelve-month revenues, providing strong revenue visibility.
Geojit BNP Paribas has a hold rating on the shares of Bharat Electronics Limited with a target price of ₹ 107.00 apiece. This translates to an upside of 15.99% as compared to BEL’s share price of ₹ 92.25 apiece at 01:18 PM on Monday.
Bharat Electronics Ltd is a large-cap company with a market capitalization of ₹ 66,921 crores. It has an ideal return on equity of 20.55% and an ideal debt-to-equity ratio of 0.01. Its shares were trading at a price-to-earnings ratio of 24.30, which is significantly lower than the industry P/E of 43.79, indicating that the stock is overvalued as compared to its peers.
Written by Simran Bafna
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