Navratna stock sets record date for a 450% dividend; Check the details

State-owned aerospace and defence company Bharat Electronics Limited (BEL) has announced the record date for the second interim dividend. Its shares were trading at ₹ 93.45 apiece at 02:56 PM on Wednesday. 

According to an exchange filing, the company has announced a dividend of 450.00% on the face value of its shares of ₹ 1. This means that the company will be paying a second interim dividend of ₹ 4.5 per share. This dividend takes its dividend yield to 5.45%. 

The company has fixed Saturday, March 25, 2023 as the record date for determining the eligibility of the shareholders for the purpose of receiving the dividend. The shares will trade ex-dividend on the same date. Therefore, investors who wish to receive the dividend will have to buy these shares on or before Friday 24 March, 2023.

BEL reported revenue from operations of ₹ 4064.9 crore in the third quarter of 2022-23, an 11% increase as compared to ₹ 3660.84 crores reported in the corresponding quarter of the previous year. Its consolidated net profit rose by 2.87% year on year (YoY) to ₹ 613.01 crores in the latest quarter, against ₹ 595.86 crores in the corresponding quarter last year. 

BEL is a large-cap company with a market capitalization of ₹ 67,798 crores. It has an ideal return on equity of 20.55% and an ideal debt-to-equity ratio of 0.01. The company’s shares were trading at a price-to-earnings ratio (P/E) of 24.62, which is significantly lower than the industry average of 49.47, indicating that the stock might be undervalued as compared to its peers. 

Written by Simran Bafna

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