This Defence PSU company which is in the business of manufacturing and supplying electronic equipment and systems to the sector of defence, surged 2 percent in opening trade after receiving orders worth Rs. 962 crore including from the Indian Navy.
Share Price Movement
In Monday’s trading session, BEL‘s share price was up by 1.95 percent to the day’s high of Rs. 282.25. The stock reiterated from the day’s high and was trading at Rs. 277.40 per share which was up by 0.20 percent from the previous close of Rs. 276.85 per share. In the past year, the stock has given around 59 percent returns, and compared to the Nifty Index, BEL has outperformed.
What happened
The company’s stock surged after receiving an order from the Indian Navy for the supply of Electro-Optic Fire Control System (EOFCS) worth Rs. 610 crores. This developed system will be installed and integrated onboard Indian Naval Platforms.
The system has the ability of sector or panoramic search, tracking different types of targets during day or night, and engages on the tracked targets with medium and short-range gun mounts.
Including the above order, BEL has secured other orders valued at Rs. 352 crores, following the last disclosure on 28th January 2025. The order includes anti-drone systems, fuzes, suppression and integrated fire detection systems, vessel communication systems, spare services, and others. It has accumulated around Rs. 11,855 crore in the current financial year.
Doubling FY25’s Order Book Value
In the recent transcript, the company’s management said, they have secured an order book of Rs. 11,000 crore this year and their guidance for this financial year is Rs. 25,000. They expect to add around Rs. 14,000 crore in the next 2 months in this financial year with NGC valued around Rs. 14,000 to Rs. 15,000 crore.
The Major contracts, including Ashwini Radar and HimShakti Phase 4, are in the final stages. With multiple large defence projects in the pipeline, BEL remains confident to achieve its annual order inflow target.
Order Book Outlook and Diversification
The company is also targeting orders such as QRSAM which is in the range of Rs. 25,000 to Rs. 30,000 crore and MRSAM & MFSTAR is expected in FY25 or before March FY26.
The company is also expanding into non-defence sectors like cybersecurity, telecom, and homeland security while aiming to increase non-defence revenue to 20 to 25 percent in the upcoming years. The order book as of 1st January stood at Rs. 71,100 crore.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 38.65 percent rise in revenue, reaching Rs.5,771 crore compared to Rs.4,162 crore in Q3FY24. During the same period, net profit increased by 52.55 percent to Rs.1,312 crore in Q3FY25, compared to Rs.860 crore in Q3FY24.
Company Profile
Bharat Electronics Ltd (BEL) was established in 1954. It is a Navratna public sector undertaking in India. The company specializes in manufacturing advanced electronic products for defence and aerospace applications. They provide a wide range of systems, including communication, radar, and electronic warfare solutions, serving both domestic and international markets.
Written by – Santhosh S
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.
