Defense: 2:1 Bonus Issue, 70% Dividend PSU Record Date: Today, Buy Suggestion from Foreign Analyst; TP Rs 257

Bharat Electronics Ltd., a public sector enterprise with Navratna status and other awards, had a little increase in share price of 0.31%, to Rs 197.25. With a target price of Rs 257 per share, a global brokerage company has suggested buying Bharat Electronics shares on the buy call. Purchasing BEL shares at the current trade price of Rs 197.25 each might result in a possible gain of 30.29% in the near future. The stock of Bharat Electronics appreciated by 113% over the previous year and decreased by 8.43% during the last two weeks.

For the fiscal year 2023–2024, the PSU suggested a second interim dividend of Re 0.70/-(70%) per equity share of Re 1/-. March 22, 2024, was the ex-dividend date of BEL stock; this is the stock’s record date. View the information below:

Performance of Bharat Electronics Shares: The 52-week high and low prices of Bharat Electronics shares on the BSE are listed as Rs 89.68 and Rs 216.70, respectively. BEL’s PE is 37.66 and ROE is 24.75, while its EPS (TTM) was 4.93. In the previous three months, Bharat Electronics shares increased by 13%; in the last six months, they returned 45%; and in the last three years, they brought in 362%. BEL’s shares returned 550% during the last five years. The stock has increased 1820% in the previous ten years.

UBS Suggests Buy Call: International brokerage firm UBS has issued a buy rating and raised its target price for BEL shares. Amidst an increase in orders for the financial year 2024, the international brokerage company has proposed a new target price of Rs 257 per share, up from the previous Rs 205 per share. We raise our target price to Rs 257 and maintain Buy, the analyst says, “given better earnings/new orders momentum, we assign a 35 times PE to March 2026 earnings (against 30 per cent earlier), building in a lower 10 per cent discount to industrial peers (against 25 per cent 10-year average).” At the current market price of Rs 185.55 per share, you may potentially profit by 38.51% if you purchase BEL shares.

BEL Acquires Orders Exceeding 1940 Crore: According to the March 14 BSE filing, “Today, Navaratna DPSU Bharat Electronics Limited (BEL) and Larsen & Toubro Limited (L&T) agreed into a contract valued at Rs 847.70 Cr plus taxes for the provision of 14 advanced Communication and Electronic Warfare (EW) sensors and systems. The Indian Navy will use these cutting-edge equipment, which are made in the country by BEL, aboard three of its cadet training ships.”

In addition, BEL secured further orders totaling Rs. 1,092.65 Cr after the latest announcement on February 13, 2024. These orders include the delivery of communication systems for the Indian Navy, LRUs for T-70 and T-90 tanks, and various spares and services. With these new events, BEL has now received orders worth Rs. 32,716.33 Cr for the current fiscal year, underscoring the business’s sustained expansion and achievement in the defense industry, according to the BSE filing.

“In continuation of our earlier letter dated March 7, 2024, we wish to inform you that the Board of Directors of the Company, at its meeting held on March March, 2024, inter alia, has declared a second interim dividend of Re 0.70/- (70%) per equity share of Re 1/- each fully paid-up for the financial year 2023–24,” states BEL’s March 15, 2024 exchange filing. After the date of proclamation, the second interim dividend will be paid within 30 days.”
BEL Establishes Record Date For Interim Dividend: March 23, 2024 is the date BEL established for the interim dividend.

Bharat Electronics Financials: BEL reported a net profit of Rs 859.6 crore for the quarter that ended on December 31, 2023, a 40% increase over the Rs 613 crore reported in the same period of the previous year. In comparison to the same quarter previous year, when BEL’s revenue was Rs 4153 crore, it was almost unchanged at Rs 4162.2 crore. BEL reported EBITDA of Rs 1072.6 crore, up 24% from Rs 863.4 crore in the same quarter of the previous fiscal year. In the meanwhile, the margin was 26%.

BEL Bonus History: Bharat Electronics last announced a bonus in the amount of 2:1 in 2022. The share was exchanged on September 15, 2022, ex-bonus. Prior to that, BEL announced bonus shares in 2015 at a ratio of 2:1 and in 2017 at a ratio of 1:10.