High ROE and ROCE multibagger stock: This aerospace & defence company wins orders worth Rs 8,194 crore and offers a high dividend yield!

The stock has an ROE of 21.95 per cent and a ROCE of 27.78 per cent with multibagger returns of 140.94 per cent

Today, shares of Bharat Electronics Ltd (BEL) zoomed 7.50 per cent to Rs 98.35 per share from its previous closing of Rs 91.49.It is one of the Top Gainers on BSE. 

BEL informed the exchanges that the Ministry of Defence (MOD) signed 12 contracts worth Rs 8,194 crore for the Indian Armed Forces. 

The contracts include EW Suite Equipment for Medium Lift Helicopters (90 Nos.), AMC for Akash Missile System, Automated Air Defence Control & Reporting System (Project Akashteer), Instant Fire Detection and Suppression System IFDSS for T72, Software Defined Radio (SDR) (1265 Nos.), HD VLF HF Receiver (1178 Nos.), Sarang (12 Nos.), LYNX U2 Fire Control Systems (13 Nos.) for Indian Navy for Rs 1705 crore and Weapon Locating Radar (Swathi) (12 Nos.) for Indian Army for Rs 991 crore. 

In addition, the company declared a second interim dividend of Rs 0.60 (60 per cent) per equity share with a face value of Rs 1 with the record date being Saturday, March 25, 2023. In the financial year 2022-2023, the company paid a total dividend of Rs 9.70 per share for a face value of Rs 1 and the dividend yield is 4.92 per cent. 

BEL was established in 1954 in association with CSF, France (now, Thales), to meet the specialized electronic equipment requirements of the Indian Defence Services. In the current financial year 2022-2023, the company has received multiple orders from the Government of India and the Ministry of Defence. Today, shares of the company saw a spurt in volume by more than 2 times on BSE. 

The stock has an ROE of 21.95 per cent and a ROCE of 27.78 per cent with multibagger returns of 140.94 per cent in just 2 years. This PSU Large-Cap stock should be kept under the radar.