Rs 74,595 Crore Order Book: President of India-Backed Defence Company Bags New Orders Worth Rs 634 Crore From Ministry of Defence
The stock, which traded at a mere Rs 0.25 in 1999, has experienced exponential growth, delivering a mind-boggling 1,26,740 per cent return to its investors.
Navratna Defence PSU Bharat Electronics Limited (BEL) has continued its growth trajectory with the acquisition of new orders worth Rs 634 crore from the Ministry of Defence. These orders encompass a diverse range of products and services, including the maintenance of the critical Akash Missile System, telescopic sights for guns, advanced communication equipment, sophisticated jammers, electronic voting machines, specialized test stations, essential spares, and comprehensive services. This significant achievement underscores BEL's pivotal role in strengthening India's defence capabilities and its commitment to delivering cutting-edge technological solutions.
Earlier, the company has secured additional orders of more than Rs 500 crore. Major orders received include laser range finders, communication equipment, vessel communication and support systems, test equipment for guns, spares, services etc. With these orders, BEL has now accumulated orders totalling Rs 8,828 crore in the current financial year.
About the Company
Navratna Defence PSU 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.
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.
BEL has demonstrated robust financial performance in the first half of FY25. The company achieved a turnover of Rs 8,530.43 crore, marking a significant 15.83 per cent growth compared to the previous year's corresponding period turnover of Rs 7,364.82 crore. In the second quarter alone, BEL recorded a turnover of Rs 4,425.29 crore, surpassing the previous year's figure of Rs 3,918.13 crore. This strong performance has translated into substantial profitability. Profit Before Tax (PBT) for the first half of FY25 reached Rs 2,488.22 crore, a 40.05 per cent increase over the previous year's Rs 1,776.69 crore. The second quarter witnessed a PBT of Rs 1,450.88 crore, up from Rs 1,072.94 crore in the same period last year. Similarly, Profit After Tax (PAT) for the first half of FY25 amounted to Rs 1,867.41 crore, a 39.03 per cent growth compared to the previous year's Rs 1,343.18 crore. The second quarter's PAT stood at Rs 1,091.27 crore, higher than the previous year's Rs 812.34 crore.
The company has a market cap of over Rs 2 lakh crore and has been maintaining a healthy dividend pay-out of 44 per cent. The company’s order book stands at Rs 74,595 crore as of October 01, 2024. The company's shares have an ROE of 26 per cent and an ROCE of 35 per cent. The stock gave multibagger returns of 360 per cent in 3 years and a whopping 1,000 per cent in a decade. The stock, which traded at a mere Rs 0.25 in 1999, has experienced exponential growth, delivering a mind-boggling 1,26,740 per cent return to its investors.
Disclaimer: The article is for informational purposes only and not investment advice.