Shares of this defence stock, which manufactures and supplies electronic equipment and systems to the defence sector, surged nearly 2 percent after securing a substantial order worth Rs.1,155 crore from Cochin Shipyard Limited for the supply of Indigenous radars.
Share price movement
In Wednesday’s trading session, the shares of Bharat Electronics Limited (BEL) surged to an intra-day high of Rs.290.4 per share, rising 1.6 percent, from its previous close of Rs.285.8 apiece. The share has retreated since then and closed at Rs.288.05 apiece.
What happened
Bharat Electronics Limited (BEL), a Defence Public Sector Undertaking, has received a Rs.850 crore order from Cochin Shipyard Limited (CSL) for the supply of indigenous Multi-Function Radar in the X Band.
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This fully indigenous radar, designed by DRDO and manufactured by BEL, is capable of detecting, acquiring, and tracking airborne targets to ensure protection for naval ships.
Additionally, following the last disclosure on 22 August 2024, BEL has secured orders worth Rs.305 crore, including navigational complex systems for ships, thermal imagers, communication equipment, fire control systems, gun control systems, spares, and services.
With these new contracts, BEL’s total order accumulation for the current financial year has reached Rs.7,075 crore.
Dividend Payment
Furthermore, BEL has announced the issuance of a final dividend of Rs.0.80 (80 percent) per equity share of Re.1 each. This dividend, declared on 28 August 2024, will be paid to eligible shareholders on 23 September 2024.
Shareholding Pattern
As of June 2024, the shareholding structure includes Promoters holding 51.14 percent of the stake, Public Investors with 10.82 percent, Foreign Institutional Investors (FII) owning 17.43 percent, and Domestic Institutional Investors (DII) possessing 20.62 percent of the company.
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Financial Performance
In its latest financial update, BEL reported revenue of Rs.4,244 crore in Q1FY25, reflecting an 8.8 percent increase from Rs.3,533 crore in the same quarter of the previous year. Net Profit for the period increased 46.75 percent to Rs.791 crore, compared to Rs.539 crore in the same period.
Company Profile
Bharat Electronics Limited is an Indian public sector company specializing in aerospace and defense electronics, primarily manufacturing advanced electronic products for ground and aerospace applications.
BEL is one of the key players in India’s defence sector and has been granted Navratna status by the Government of India, reflecting its significant contributions to national security and technological advancements.
Written by – Siddesh S Raskar
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