1,22,500 per cent returns & Rs 76,705 crore order book: Multibagger defence company bags new orders worth Rs 695 crore from Ministry of Defence
The stock gave multibagger returns of 130 per cent in just 1 year, 425 per cent in 3 years and a whopping 1,580 per cent in a decade.
On Friday, shares of Bharat Electronics Limited (BEL) gained 1.53 per cent to an intraday high of Rs 309.20 per share from its previous closing of Rs 304.55. The stock’s 52-week high is Rs 340.35 and its 52-week low is Rs 127. At the closing bell, shares of the company were trading at Rs 306.05, up 0.49 per cent with a spurt in volume by more than 1.41 times on BSE.
Bharat Electronics Limited (BEL), a Navratna Defense Public Sector Undertaking, has received significant orders totalling Rs 695 crore from the Ministry of Defense. These orders include crucial defence equipment such as Combat Management Systems, communication equipment, Stabilized Optronic Pedestals, upgrades, spare parts, and services. The addition of these new orders brings BEL's total order book for the current financial year to an impressive Rs. 5920 crores, demonstrating its strong position in the defence industry.
Navratna Defense PSU Bharat Electronics Limited (BEL) reported a strong performance in the first quarter of the financial year 2024-25. The company's revenue surged by 19.10 per cent to Rs 4,105.14 crore compared to the same period last year. Profit before tax (PBT) also witnessed significant growth of 47.40 per cent, reaching Rs 1,037.34 crore. Additionally, profit after tax (PAT) climbed by 46.21 per cent to Rs 776.14 crore. The order book position of the company as of July 01, 2024, stood at Rs 76,705 crore.
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About the Company
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.
The company has a market cap of Rs 2.24 lakh crore and has been maintaining a healthy dividend payout of 48 per cent. The company’s order book stands at Rs 76,705 crore as of July 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 130 per cent in just 1 year, 425 per cent in 3 years and a whopping 1,580 per cent in a decade. From Rs 0.25 (in the year 1999) to Rs 306.5 per share, the stock gave multibagger returns of over 1,22,500 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.
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