The Ministry of Defence has signed two contracts worth ₹ 3800 crores with Navratna PSU Bharat Electronics Ltd (BEL) for the supply of Medium Power Radar and Digital Radar Warning Receiver (RWR) for the Indian Air Force. Shares of BEL were trading at ₹ 92.85 apiece at 12:08 PM on Friday.
The medium power radar (Arudhara)is indigenously developed and manufactured by Bharat Electronics Ltd based on Electronics and Radar Development Establishment (LDRE) – DRDO design and is expected to further enhance the surveillance capability of the Indian Air Force.
The digital radar warning receiver for fighter aircraft of the Indian Air Force has been indigenously designed and developed by Combat Aircraft Systems Development & Integration Centre (CASDIC), DRDO.
ICICI Direct has a buy call on the shares of the company with a target price of ₹ 130.00. This translates to an upside of 40% as compared to the share price of the company. It sees strong growth in the profitability of the company, aided by sustained margins.
BEL is a large-cap company with a market capitalization ₹ 67,323 crores. It has an ideal return on equity of 20.55% and an ideal debt-to-equity ratio of 0.01. Its shares were trading at a price-to-earnings ratio of 24.45 which is significantly lower than the industry P/E of 43.46, indicating that its shares are undervalued as compared to its peers. The stock has a dividend yield of 1.85%.
The state-owned company’s Revenue increased to ₹ 4,131.01 crores in the October to December quarter of 2021, against ₹ 3,693.71 crores reported in the same quarter last year. Its net profit increased by 2.64% to ₹ 598.77 in the latest quarter, as compared to ₹ 583.37 reported in the corresponding quarter last year.
Written by Simran Bafna
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.
