Shares of a company that manufactures and supplies electronic equipment & systems to the defence sector surged marginally by 0.4 percent on BSE to Rs. 294.5 on Monday, after receiving approval from the Ministry of Corporate Affairs (MCA) for the incorporation of a new JV company with Israel Aerospace Industries.
With a market capitalisation of Rs. 2.09 lakh crores, at 12:01 p.m., the shares of Bharat Electronics Limited (BEL) were trading at Rs. 287.15, as against its previous closing price of Rs. 293.35.
What’s the News:
According to the latest regulatory filings with the stock exchanges, Bharat Electronics Limited (BEL) received approval from the Ministry of Corporate Affairs (MCA) for the incorporation of a new joint venture (JV) company, “BEL IAI AeroSystems Private Limited”.
This JV company is formed between Bharat Electronics Limited and Israel Aerospace Industries Limited, Israel.
The incorporation of BEL IAI AeroSystems Private Limited will provide product support, including repair and maintenance and related activities, for the Medium-Range Surface to Air Missile (MRSAM) System deployed and used in India.
BEL has obtained approval from the Ministry of Defence, India, as well as from the Committee of Ministries for Social & Economic Affairs, Israel.
Also Read: Gas stocks falls after LIC sells 2.09% stake in the company
Previous News:
On 11th September, BEL secured an order worth Rs. 850 crore from Cochin Shipyard Limited for the supply of indigenous Multi-Function Radar in X Band.
This fully indigenous radar, designed by DRDO and manufactured by BEL, is capable of detecting, acquiring and tracking airborne targets to enhance the protection of naval ships.
Additionally, following the previous disclosure on 22nd August, BEL has secured orders worth Rs. 305 crores, including navigational complex systems for ships, thermal imagers, communication equipment, fire control systems, gun control systems, spares, and services.
With these latest orders, BEL’s total order accumulation for FY25 has now reached Rs. 7,075 crores.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 20 percent, rising from Rs. 3,533 crores in Q1 FY24 to Rs. 4,244 crores in Q1 FY25.
During the same period, the company’s net profit rose from Rs. 539 crores to Rs. 791 crores, reflecting a growth of 46.8 percent YoY.
Stock Performance
The stock has delivered multibagger returns of nearly 106 percent of returns in one year, while around 35.8 percent of positive returns in the last six months. So far in 2024, the shares of BEL have given positive returns of about 55 percent.
About the Company:
Bharat Electronics Limited is a Government of India undertaking Navratna PSU, primarily engaged in the business of manufacturing and supply of electronic equipment and systems for the defence and civilian segments.
Also Read: Semiconductor stock in focus after acquiring 100% stake in smart meter company
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
