Rs 71,100 Crore Order Book: Multibagger Defence Company Bags New Orders Worth Rs 2,463 Crore Defence Order; High ROE and High ROCE Company
With a PE ratio of 40.5x, the company trades at a discount compared to the industry PE of 49.4x. The company has ROCE of 34.6 per cent and ROE of 26.3 per cent.
Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking, has secured a significant contract valued at Rs 2,463 crore with the Ministry of Defence for the supply and services of Ashwini Radars to the Indian Air Force. These radars, developed in collaboration with the Defence Research and Development Organisation (DRDO), are fully indigenous Active Electronically Scanned Array (AESA) radars. They feature integrated Identification Friend or Foe (IFF) systems and advanced Electronic Counter-Countermeasures (ECCM) capabilities, providing 4D surveillance. These mobile radars are versatile, capable of deployment on various terrains, and can automatically detect and track a wide range of aerial targets, from fast-moving fighter aircraft to slower targets.
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This order significantly bolsters BEL's order book, which now totals Rs 71,100 crore for the current financial year. The contract underscores BEL's strategic role in enhancing India's defence capabilities through cutting-edge technology and innovation.
Bharat Electronics Limited, with a current stock price of Rs 276.75, is a prominent player in the Indian defence sector. The company boasts a market capitalisation of Rs 2,02,590.52 crore. Over the past year, BEL's stock has delivered a return of 30.48 per cent, and an impressive 287.44 per cent over three years, classifying it as a multibagger stock. The stock's 52-week high is Rs 340.35, while the 52-week low is Rs 179.2. With a price-to-earnings (PE) ratio of 40.19, BEL continues to be a significant entity in India's defence industry, driven by robust order inflows and strategic partnerships. The company has been maintaining a healthy dividend payout of 43.4 per cent.
In the Quarterly Results of Dec-24, the company reported a revenue of Rs 5,770.69 crore, reflecting a growth of 38.65 per cent YoY and 25.32 per cent QoQ. The net profit stood at Rs 1,310.95 crore, marking an increase of 52.51 per cent YoY and 20.00 per cent QoQ. The net profit margin for the quarter was 22.72 per cent, compared to 23.72 per cent in Sep-24 and 20.65 per cent in Dec-23.
For the full-year FY24 results, the company recorded a revenue of Rs 20,268.24 crore, registering a growth of 14.29 per cent compared to FY23. The net profit for the year was Rs 4,991.51 crore, reflecting a 23.06 per cent increase. The net profit margin stood at 16.15 per cent in FY24, compared to 15.00 per cent in FY23.
As of December 2024, the shareholding pattern remains largely stable. Promoters hold 51.14 per cent, while Foreign Institutional Investors (FIIs) have a stake of 17.34 per cent. Domestic Institutional Investors (DIIs) hold 20.94 per cent, and the public shareholding stands at 10.58 per cent. There is no significant change in shareholding compared to the previous quarter.
With a PE ratio of 40.5x, the company trades at a discount compared to the industry PE of 49.4x. The company has ROCE of 34.6 per cent and ROE of 26.3 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.