Shares of this large-cap company jumped around 1 percent in Monday’s trading session after receiving an order worth Rs. 3,172 crores to upgrade BMP tanks. The shares have delivered a multibagger return of 148 percent to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 2,25,799 crores, the shares of Bharat Electronics Ltd started Monday’s trading session on a higher note at Rs. 310.95 compared to its previous close of Rs. 305.90. During the trading session, the shares hit a high of Rs. 312.50, gaining around 1 percent and are currently trading at Rs. 307 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that on 28th June 2024, it had secured a Rs 3,172 crores contract from Armoured Vehicles Nigam Limited (AVNL) to upgrade BMP 2/2K tanks for the Indian Army.
The project involves supplying and installing an advanced, indigenously designed and developed Sighting and Fire Control System (FCS) for the tanks, along with a comprehensive engineering support package.
Since May 22, 2024, the state-owned defence company has secured additional orders totalling Rs 481 crore. These orders encompass Doppler Weather Radar, classroom jammers, spares, and services. With these orders, BEL has accumulated a total of Rs 4,803 crore in orders in the current financial year.
Financials:
Looking at the company’s financial statements, Quarterly, the revenue zoomed by 107 percent from Rs. 4,142.27 crores during the December quarter to Rs. 8,564.08 crores in the March quarter. In addition, the net profits magnified by 111 percent from Rs. 848.12 crores to Rs. 1,785.66 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by 35 percent from Rs. 6,344.65 crores during Q4FY23 to Rs. 8,564.08 crores in Q4FY24. On the other hand, the net profits increased by 31 percent from Rs. 1,366.38 crores to Rs. 1,785.66 crores during the same timeframe.
Order Book:
As of 1st April 2024, the order book position of the PSU company, stood at Rs. 75,934 crores. Furthermore, Navaratna company has received orders worth Rs.1,150 crores to date during the financial year 2024-25.
The major orders include AMC of Akash Missile System, Combat Management System for Ships, Missile Fire Control System for ships, Laser Range Finders, Communication Network Centre etc.
Future Outlook:
Moreover, BEL is targeting an export turnover of approximately USD 110 million and anticipates substantial orders totalling Rs 15,000 crores in the near future. Looking ahead to FY25, it foresees order acquisitions reaching Rs 25,000 crores.
Important Financial Ratios:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 21.53 percent during FY 22-23 to 24.40 per cent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 26.38 percent to 30.13 percent during the same timeframe.
Company Profile:
Headquartered in Bengaluru, Bharat Electronics Ltd was incorporated in 1954. The company is engaged in the business of designing, manufacturing and supplying electronic equipment and systems for the defence and civilian markets in India.
Written By Vaibhav Patil
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