Rs 68,000 crore order book: This multibagger aerospace & defence company bags huge orders worth Rs 8,793 crore from Indian Army; hit 52-week high!

The stock gave multibagger returns of 330 per cent in 3 years and a whopping 1,530 per cent in a decade.

On Friday, shares of Bharat Electronics Ltd gained 3.81 per cent to an intraday high & 52-week high of Rs 170.15 per share. At the closing bell, shares of the company were trading at Rs 169.1 per share, up 3.17 per cent. The stock gave multibagger returns of 330 per cent in 3 years and a whopping 1,530 per cent in a decade.

The company received orders of Rs 8793 crore from the Indian Army. Here are the details:

Order No.1 – The company secured a major Rs 580 crore order from the Indian Army for radar maintenance, boosting Indian electronics and related industries including small and medium enterprises. This comes alongside additional orders worth Rs 3,335 crore for various military equipment, marking a significant contract win for BEL in areas like airborne warning systems, thermal sights, communication technology, and night vision gear.

Order No.2 - BEL secured a massive Rs 4,522 crore contract from the Indian Army for supplying various calibre fuses, aligning with India's push for critical technology indigenization. This major deal, signed on December 15th, comes alongside additional orders worth Rs 356 crore for diverse products including electronic warfare testers, medical systems, EVM batteries, and night vision equipment.

With the above, BEL has cumulatively received orders worth Rs 23,176 crores (excl. taxes) in the current financial year 2023-24. This project will have the participation of Indian Electronics and associated Industries, including MSMEs which are sub-vendors of BEL. The equipment(s) manufactured by BEL are part of the Atmanirbhar Bharat program.

Incorporated in 1954, Bharat Electronics Ltd manufactures and supplies electronic equipment and systems to the defence sector. The company also has a limited presence in the civilian market. The company has a market cap of Rs 1.23 lakh crore and has been maintaining a healthy dividend payout of 45.4 per cent.

According to Quarterly Results, the net sales increased by 1.2 per cent to Rs 4,009.06 crore and net profit increased by 26.98 per cent to Rs 780.73 crore in Q2FY24 compared to Q2FY23. In its half-yearly results, the net sales increased by 6.19 per cent to Rs 7,542 crore and net profit increased by 34.85 per cent to Rs 1,309.33 crore in H1FY24 compared to H1FY23.

Order Book & Capex Plan Update: As of September 30, 2023, the company order book stands over Rs 68,000 crore which includes hundreds of small or medium-sized orders and the company is planning a capex of approx. Rs 700 to Rs 800 crore. The company executed a Rs 250 crore capex plan last year.

The stock has an ROE of 22.80 per cent and an ROCE of 30 per cent. This PSU Large-Cap stock should be kept under the radar.

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