Shares of a company that manufactures and supplies electronic equipment and systems to the defence sector surged by 0.4 percent on BSE to hit an intraday high at Rs. 301 in the trading session of Thursday.
With a market capitalisation of Rs. 2.19 lakh crores and a Piotroski score of 9, the shares of Bharat Electronics Limited (BEL) opened at Rs. 299.25, compared to its previous closing price of Rs. 299.95.
Order Book & Management Guidance
As of July 31, 2024, the order book position of Bharat Electronics Limited stood at Rs. 76,705 crores. The management had given guidance for order inflow of nearly Rs. 25,000 crores for the current fiscal year.
Looking ahead, to accommodate the anticipated increase in volumes, new factories are being established.
Facilities are under construction in Machilipatnam and Palasamudram, Andhra Pradesh. The Machilipatnam factory, which was initially smaller, is being replaced with a larger facility, while the new facilities will support in the company’s growth plans for the coming years.
In terms of order book distribution, defence-related orders account for around 85.8 percent, non-defence orders constitute around 11.3 percent, and exports make up about 2.9 percent.
Further, the company is expecting revenue growth of around 15 percent for FY25, while it has already grown by 19 percent during Q1 FY25.
Also read
Previous Orders
28th June – Bharat Electronics Limited signed a contract valued at Rs. 3,172 crores with Armoured Vehicles Nigam Limited (AVNL) for the supply and installation of an advanced, indigenously designed and developed Sighting and Fire Control System (FCS) for the upgrade of BMP 2/2K Tanks of the Indian Army, along with a comprehensive Engineering Support Package.
Additionally, BEL has secured other orders valued at Rs. 481 crores which comprise of doppler weather radar, classroom jammers, spares and services etc.
12th July – BEL received an export order worth Euro 25.75 Million (~Rs. 230 crores) from Thales Reliance Defence Systems (TRDS) for the manufacture and supply of Transmit Receive (TR) modules. The TR modules will be used in the radars of fighter aircrafts.
Additionally, BEL has secured orders valued at Rs. 192 crores comprising of communication equipment, encryptors, spares and services for radars, FCS etc.
22nd August – BEL secured orders worth Rs. 695 crores comprising of the combat management system, communication equipment, stabilized optronic pedestal, upgrades, spares, services and more.
With these, BEL has now accumulated orders totalling Rs. 5,920 crores in the current financial year.
Financials
The company experienced marginal growth in its revenue from operations, showing a year-on-year rise of around 20.2 percent from Rs. 3,533 crores in Q1 FY24 to Rs. 4,244 crores in Q1 FY25.
Similarly, its net profit grew during the same period from Rs. 539 crores to Rs. 791 crores, indicating a rise of nearly 46.7 percent YoY.
Stock Performance
The shares of Bharat Electronics Ltd delivered multibagger returns of nearly 122.8 percent in one year and around 62 percent of positive returns year-to-date.
About the company
Headquartered in Bengaluru, Bharat Electronics Limited is a Government of India undertaking Navratna PSU, primarily engaged in developing electronics technology solutions for the defence and civilian segments. It manufactures and supplies electronic equipment and systems to the defence sector.
Written by Shivani Singh
Also read
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.
