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

Shares of Navratna status multibagger public sector undertaking Bharat Electronics Ltd gained marginally by 0.31% to Rs 197.25 per share. Global brokerage firm has recommended buy call to Bharat Electronics share with target price of Rs 257 apiece. If you buy BEL share now at last trading price of Rs 197.25 apiece, you can fetch potential gain of 30.29% soon. Bharat Electronics shares gave return of 113% in last 1-year and depreciated by 8.43% in last 2-weeks span.

The PSU recommended second interim dividend of Re 0.70/- (70%) per equity share of Re 1/- each for the financial year 2023-24. BEL stock traded ex-dividend on March 22, 2024 and today is the record date of the stock. Check details below:

Bharat Electronics Shares Performance: The 52-week high price of Bharat Electronics shares on BSE is quoted at Rs 216.70 apiece and 52-week low price is Rs 89.68 apiece, respectively. BEL has a ROE of 24.75 and PE of 37.66 while the EPS (TTM) stood at 4.93. Bharat Electronics shares surged 13% in last 3-months, gave return of 45% in last 6-months, and offered gain of 362% in last 3-years. BEL stock gave return of 550% in last 5-years. In last 10-years, the scrip rallied 1820%.

UBS Suggests Buy Call: Foreign brokerage firm UBS has upgraded target price of BEL share and assigned buy rating. The global brokerage firm has recommended fresh target price of Rs 257 apiece from the previous Rs 205 per share amid rise in financial year 2024 orders. According to the analyst, ""We raise our target price to Rs 257 and maintain Buy, assigning 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), given better earnings/new orders momentum." If you buy BEL shares now at the current market price of Rs 185.55 per share, you can fetch potential gain of 38.51%.

BEL Secures Orders Worth More Than 1940 Crore: As per the BSE filing dated March 14, "Navaratna DPSU Bharat Electronics Limited (BEL) has today entered into a contract valued at Rs 847.70 Cr plus taxes with Larsen & Toubro Limited (L&T) for the supply of 14 cutting-edge Communication and Electronic Warfare (EW) sensors and systems. These state-of-the-art systems, manufactured domestically by BEL, will be installed on three Cadet Training Ships for the Indian Navy."

BEL also bagged other orders valued at Rs. 1,092.65 Cr following the last disclosure on 13th February 2024. These orders encompass the supply of LRUs for T-70 & T-90 Tanks, Communication Systems for the Indian Navy, as well as other Spares and Services. With these recent developments, BEL has now accumulated orders totaling Rs.32,716.33 Cr in the current financial year, highlighting the company's continued growth and success in the defence sector, BSE filing added.

BEL Announces 2nd Interim Dividend: According to the exchange filing of the PSU dated March 15, 2024, "In continuation to our earlier letter dated 7'h March, 2024 we wish to inform you that Board of Directors of the Company at its meeting held on 15th March, 2024, inter alia, has declared second interim dividend of Re 0.70/- (70%) per equity share of Re 1/- each fully paid-up for the financial year 2023-24. The second interim dividend will be paid within 30 days from the date of declaration."
BEL Sets Record Date For Interim Dividend: BEL set record date for interim dividend as March 23, 2024.

Bharat Electronics Financials: BEL announced its net profit for the quarter ended December 31, 2023 at Rs 859.6 crore, up 40% as against Rs 613 crore announced in the similar quarter of last year. BEL's revenue remained nearly flat at Rs 4162.2 crore as against Rs 4153 crore in the corresponding quarter of last year. EBITDA of BEL announced at Rs 1072.6 crore, up 24% as against Rs 863.4 crore in the same quarter of preceding fiscal. Meanwhile, margin arrived at 26%.

BEL Bonus History: The last bonus that Bharat Electronics declared was in 2022 in the proportion of 2:1. The share traded ex-bonus on September 15, 2022. Before that BEL declared bonus shares in 2017 in the ratio of 1:10 and in 2015 in 2:1 ratio.

Disclaimer: The stock has been picked from the brokerage report of UBS. 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.