1:10 Split, 3 Bonus: Prabhudas Lilladher Suggests BUY; Defence PSU Stock Ex-Dividend For 70% Payout

Bharat Electronics, a Navratna Defense PSU, will trade ex-dividend on March 22 in anticipation of its approaching 70% dividend distribution. Prabhudas Lilladher has suggested an intraday buy with a target price of Rs 207 per share on the ex-dividend day. In the direction of a 52-week high, BEL is narrowing the difference before the record date.

Bharat Electronics Share Price: During the opening bell on the day of ex-dividend, BEL shares saw a little increase, ultimately reaching an intraday high of Rs 196.85 per. Over Rs 1.43 lakh crore is its market capitalization.

Ahead of BEL’s impending dividend record date, investors flocked to the company. With a market valuation of Rs 1,43,746.80 crore, BEL shares increased 4.9% on the BSE on March 21 to Rs 196.65 a share.

BEL is trading as a multibagger, having risen a massive 119% from its 52-week low of Rs 89.93 a share, and is very close to its 52-week high.

The upper and lower circuit levels of the stock are, respectively, Rs 216.30 and Rs 177.

Bharat Electronics Intraday Call: Prominent brokerage Prabhudas Lilladher advised purchasing BEL shares on March 22, the day they become ex-dividend.

Prabhudas Lilladher’s technical analyst, Shiju Koothupalakkal, recommended buying Bel at a range of Rs 196.85 with a stop loss of Rs 192 and a target price of Rs 207.

Buying and selling a listed stock on the same day is often referred to as an intraday call. It is the stock market’s shortest trading period.

Additionally, according to Trendlyne data, the 1-year average target price for BEL is Rs 201, suggesting a 2% gain ahead.

On the other hand, BEL may see considerable long-term growth.

The latest to advise purchasing BEL is ICICI Direct, which does so because of the company’s favorable valuation—28x P/E on an FY26E basis—given its robust growth. In addition, the firm has robust industry tailwinds and consistent order inflows and execution.

As a result, Rs 240 is the goal price that ICICI Direct has set.

Bharat Electronics Dividend: For its second interim dividend of Rs 0.70/- (70%) per equity share of Rs 1/-each fully paid up for the financial year 2023-2024, BEL shares went ex-dividend on March 22.

After the announcement date, the second interim dividend will be distributed within 30 days. However, March 23, 2024, has been set as the record date.

However, since March 23 falls on a weekend, BEL will consider as qualified investors those who have their shares in their demat account before the end of March 22.

In addition, BEL already distributed its first interim dividend of Rs 0.70 per share, or 70%, for the current fiscal year 2023–24. In contrast, the distribution in FY23 was 180%, or Rs 1.8% per share.

BEL’s dividend yield, at the current market price, is around 1%.

BEL has paid out up to 50 dividends since August 2001, according to Trendlyne statistics. In addition to other business dealings, BEL has distributed three bonuses and carried out an investor equity split.

Bonus Issues and Stock Split for Bharat Electronics: BEL has only implemented one stock split so far. One BEL share is divided into 10 smaller shares, with effect from March 16 of that year. Face value was divided between one and ten rupees. However, BEL rewards bonus shares!

Since 2015, BEL has given its shareholders three bonuses in ten years. September 2015 saw the first bonus reward of a 2:1 ratio, while September 2017 and September 2022 saw the 1:10 and 2:1 bonus issues, respectively.