10:1 Split, 80% Dividend: Defence PSU Declines 5.82%, CLSA Upgrades TP To Rs 294; Buy

Large cap aerospace & defence sector company, Bharat Electronics Ltd (BEL) witnessed decline of 5.82% in last 1-week span and surged today by nearly 5% on BSE. Current market price of Bharat Electronics Ltd share on BSE is Rs 273.70 per share on BSE. Bharat Electronics Ltd shares have already rallied 132% in last 1-year only and soared 75% in last 6-months. Meanwhile, leading global brokerage firm CLSA issued buy call with target price of Rs 294.

BEL has already recommended a final dividend of Re 0.80/- per equity share of Re 1/- each for the FY 2023-24. The Aerospace and Defence PSU has a market cap of Rs 2,00,068.65 crore. More details below:

CLSA Has Buy Call On BEL Share: CLSA downgraded Bharat Electronics to 'outperform' from 'buy'. However, the analyst upgraded the target price to Rs 294 from Rs 207. According to the analyst, defense stocks emerged the flavor of the season under Modi Govt's 2nd term, soaring greater highs amid centre's push towards the indigenization of defense manufacturing under the Atmanirbhar Bharat theme. CLSA expects Modi government will continue to "walk-the-talk" on the defence front and continue to push for indigenisation. The government's thrust has led to a 9% CAGR in defence spending over FY16-24, which is unlikely to change.

BEL Dividend: According to the regulatory filing of BEL issued as on May 27, "Board of Directors of the Company at their meeting held on 201h May, 2024, inter alia, has recommended a final dividend of Re 0.80 /- per equity share (80%) of Re 1/- each fully paid-up for the financial year 2023-24 subject to approval by the shareholders in the next Annual General Meeting of the Company."

Bharat Electronics Share Performance: The 52-week high price of BEL shares on BSE were quoting Rs 323.00 per share (as on 03/06/2024) and 52-week low price is Rs 116.45 per share (as on 08/06/2023). Its PE is 49.77 and ROE is 25.00. Bharat Electronics shares gave stunning returns 48% year-to-date, zoomed 238% in last 2-years, and gave return of 438% in last 3-years. BEL shares surged 668% in last 5-years.

Bharat Electronics Q4: BEL announced a 30% year-on-year surge in consolidated net profit at Rs 1,797 crore for the quarter ended March 2024 as against the net profit of Rs 1382 crore for the corresponding quarter of last year. Revenue from operations surged 32% to Rs 8,564 crore for Q4 FY 2024 as compared to Rs 6479.12 crore for the similar quarter of last year.

For full FY24, BEL declared profit after tax (PAT) at Rs 3,984.52 crore, up 33.5% as against the PAT of Rs 2,984.42 crore registered for FY23.

BEL Bonus History: BEL's last bonus issue was announced in 2022 in the ratio of 2:1 implying shareholder received 2 bonus shares for every 1 share held. BEL share traded ex-bonus on September 15, 2022. Prior to this, BEL announced bonus shares in 2017 in the proportion of 1:10 and in 2015 in the ratio of 2:1 proportion.

Bharat Electronics Ltd Stock Split History: BEL split the face value of its shares once since March 16, 2017. Bharat Electronics last split the face value of its shares from Rs 10 to Re 1 in 2017.BELshare traded an ex-split as on March 16, 2017.

Bharat Electronics About: Established in 1954, BEL engaged in manufacturing of specialised electronic equipment requirements of the Indian Defence Services. BEL produces a wide range of equipment for areas such as defence communication, radars, naval systems, c4i systems, weapon systems, homeland security, telecom & broadcast systems, electronic warfare, tank electronics, electro-optics, professional electronic components and solar photovoltaic systems, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of CLSA. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.