Rs 68,000 crore order book: This multibagger aerospace & defence company bags new orders worth Rs 3,915 crore from Indian Army; hit 52-week high!

The stock gave multibagger returns of 320 per cent in 3 years and a whopping 1,420 per cent in a decade.

On Thursday, shares of Bharat Electronics Ltd gained 4.35 per cent to an intraday high & 52-week high of Rs 163 per share. At the closing bell, shares of the company were trading at Rs 160.3 per share, up 2.62 per cent with a spurt in volume by more than 2.44 times on BSE. The stock gave multibagger returns of 320 per cent in 3 years and a whopping 1,420 per cent in a decade.

The company received an order of Rs 580 crore from the Indian Army for AMC of radars. This project will have the participation of Indian electronics and associated industries, including MSMEs, which are sub-vendors of BEL.

The company has also received additional orders worth Rs 3,335 crore since the last disclosure on September 15, 2023, and the said orders pertain to AMC for AEW&C system (Airborne Early Warning & Control), Uncooled TI sights, Software Defined Radios, SWIR payload, AMC for IACCS, Passive Night Vision Binoculars etc from India Army.

All the equipment manufactured by BEL is part of the Aatmanirbhar Bharat program. With the above, cumulatively BEL has received orders worth Rs 18,298 crore in the current financial year 2023-24.

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 1.17 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 30.10 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.