Rs 68,000 crore order book: This multibagger aerospace & defence company is likely to receive more orders from MoD and potentially exceeding Rs 25,000 crore order inflow in FY24!

The stock gave multibagger returns of 350 per cent in 3 years and a whopping 1,600 per cent in a decade.

On Thursday, shares of Bharat Electronics Ltd gained 2.75 per cent to an intraday high of Rs 170.60 per share. At the closing bell, shares of the company were trading at Rs 170.60 per share, up 2 per cent. The stock gave multibagger returns of 350 per cent in 3 years and a whopping 1,600 per cent in a decade. The shares of the company saw heavy with a spurt in volume by more than 1.41 times on BSE.  

Earlier, BEL, India's leading electronics company, secured a record-breaking order worth Rs 8793 crore from the Indian Army. This order is a significant step towards domestic electronics and strengthens India's drive towards tech indigenization. The deal includes various equipment, such as AWACS and night vision, along with the maintenance of radar, which was valued at Rs 580 crore. This contract showcases BEL's expertise and strengthens the Army's electronic arsenal. Additionally, a massive Rs 4,522 crore fuse supply contract highlights India's commitment to self-reliance in critical defence tech. This order is a watershed moment for BEL and India's national security as it boosts cutting-edge technology and strengthens the country's defence capabilities.

With the above, BEL has cumulatively received orders worth Rs 23,176 crore (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.

With strong momentum and potential for further orders from the Ministry of Defence, BEL is poised to surpass its order inflow target of Rs 25,000 crore for FY24, solidifying its position as a leader in the Indian defence electronics sector.

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 1.25 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 (FY23).

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.