The shares of Bharat electronics gained 2 per cent to 11.50 on Thursday and were trading at Rs 108 levels on account of the recent developments in the company. The stock is trading near its 52-week high of Rs 115 which it reached last month.
On Wednesday, the company announced that it signed a Memorandum of Understanding (MoU) with Munitions India (MIL) to jointly address the requirements of Indian Defence and export markets in the areas of ammunition, explosives and related systems.
Further, they also announced on Thursday that Triton Electric Vehicle India had issued a letter of intent to the company to procure battery packs for its semi-truck project in India at an estimated value of Rs 8,060 crore.
In the past five days, the stock has rallied by approximately 6 per cent. On a Year to Date (YTD) basis, the stock has delivered a return of 54 per cent as the stock price has risen from Rs 70 in January to the current levels.
In October 2020, the stock was trading at Rs 30.85 a piece on BSE. From there it has spiked up to the current levels logging a multibagger return of 250 per cent.
Bharat Electronics Limited (BEL) is an Indian Government-owned aerospace and defence electronics company that primarily manufactures advanced electronic products for ground and aerospace applications.
In Q1FY22, the company reported total revenue of Rs 3,140 crores and a net profit of Rs 356 crores.
The Navratna PSU company has a market capitalization of Rs 78,580 crores and a dividend yield of 4.18% as on October 20th, 2022. The company is undervalued as it has a TTM PE ratio of 28.65 as compared to the industry average of 36.98.
Written by Anoushka Roy
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