1,13,100 per cent multibagger returns & Rs 75,934 crore order book: Multibagger Defence PSU stock hits 52-week high on stellar FY24 results; declares 80 per cent dividend

The stock gave multibagger returns of 160 per cent in just 1 year, 430 per cent in 3 years and a whopping 1,700 per cent in a decade.

Today, one of the Top Gainers on BSE & NSE, shares of Bharat Electronics Limited (BEL) gained 9.35 per cent and made a fresh new 52-week high of Rs 283 per share from its previous closing of Rs 258.8. The shares of the company saw a spurt in volume by more than 6 times.

Bharat Electronics Limited (BEL), established in 1954, is a prominent Indian government-owned company under the Ministry of Defence. They specialize in manufacturing cutting-edge electronic products and systems for the Indian armed forces, encompassing areas like radars, missile systems, communication technologies, electronic warfare systems, avionics for aircraft, naval systems, and even tank electronics. While their primary focus is defence, BEL also has a limited presence in the civilian market, offering solutions in cybersecurity, e-mobility, railways, e-governance and more.

Bharat Electronics Limited (BEL), a leading Navratna Defence PSU in India, performed well financially in FY 2023-24. The company achieved a turnover of Rs 19,819.93 crore, reflecting a significant growth of 14.35 per cent compared to Rs 17,333.37 crore in the previous fiscal year. This positive trend continued throughout the year, with the fourth quarter (Q4FY24) registering a turnover of Rs 8,335.01 crore, up from Rs. 6,327.48 crore in the corresponding quarter of the prior year.

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BEL's profitability also witnessed a strong increase. The company's profit before tax (PBT) for FY24 stood at Rs 5,334.56 crore, a substantial growth of 33.87 per cent over Rs 3,984.88 crore in FY23. This growth momentum was maintained in Q4FY24 as well, with PBT reaching Rs 2,385.61 crore compared to Rs 1,781.49 crore in the same quarter of the previous year. Similarly, BEL's profit after tax (PAT) for FY24 jumped 33.70 per cent to Rs 4,020 crore, compared to Rs 3,006.67 crore in FY23. The company's Q4FY24 PAT also reflected a positive trend, rising to Rs 1,783.52 crore from Rs 1,365.36 crore in the corresponding quarter of the prior fiscal year. These figures indicate BEL's financial strength and its ability to generate healthy profits.

The Board of Directors recommended a Final dividend of Rs 0.80 per equity share (80 per cent) having a face value of Rs 1 each and the same is subject to the approval by the Shareholders in the ensuing Annual General Meeting of the Company.

The company has a market cap of over Rs 2 lakh crore and has been maintaining a healthy dividend payout of 48 per cent. The company’s order book stands at Rs 75,934 crore as of April 01, 2024.

The shares of the company have an ROE of 27 per cent and an ROCE of 35 per cent. The stock gave multibagger returns of 160 per cent in just 1 year, 430 per cent in 3 years and a whopping 1,700 per cent in a decade. From Rs 0.25 (in the year 1999) to Rs 283 per share (today), the stock gave multibagger returns of 1,13,100 per cent. This Defence PSU Mid-Cap stock should be kept under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.