2:1 Bonus Issue, Rs 2/Share Dividend: Buy Multibagger Defence PSU, TP Rs 280: Analysts

Leading global brokerage firm has initiated coverage on multibagger defence PSU Bharat Electronics Ltd share with target price of Rs 280 apiece. Another brokerage house Anand Rathi too has assigned buy with target price of Rs 250 apiece. Current market price of Bharat Electronics Ltd share on BSE is Rs 233.40 per share with intraday fall of 0.43%. if you buy Bharat Electronics share now, you can fetch potential return of 19.97%.

Bharat Electronics shares offered traders highly attractive returns over the years. Recently, BEL announced second interim dividend of Re 0.70/- (70%) per equity share of Re 1/- each fully paid-up for the financial year 2023-24 and fixed March 23, 2024 as the record date. More details below about Bharat Electronics shares:

Bharat Electronics Share Performance & Return: The 52-week high price of Bharat Electronics share on BSE is Rs 238.00 per share (as on 15/04/2024) and 52-week low price is Rs 100.01 per share (as on 17/04/2023), respectively. The PSU has a market capitalisation of Rs 1,70,610.24 crore. Bharat Electronics shares surged 24% in last 1-month, jumped 70% in last 6-months, offered return of 131% in last 1-year, soared 184% in last 2-years, and rose 448% in last 3-years only. Bharat Electronics stock offered shareholders eye-popping returns of 644% in last 5-years and 1811% in last 10-years.

BEL Technical: Score is 71.35 indicating that the stock is technically strong. Stocks with score above 70 are considered as technically Strong. RSI is 74.1, RSI above 70 is considered overbought. This implies that stock may show pullback. MACD is above its center and signal line, this is a bullish indicator. Kotak Flexicap Fund has stake of 3.27% in BEL with 239,087,048 shares and Hdfc Pension Management Company Ltd has 1.31% stake in the PSU, according to Trendlyne.

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.
BEL Dividend History: Bharat Electronics announced 50 dividends since August 27, 2001. In last 12 months, Bharat Electronics Ltd announced an equity dividend amounting to Rs 2.00 per share. At the current share price of ₹233.40, Bharat Electronics Ltd shares offer dividend yield of 0.86%.

Anand Rathi On BEL: Manan Goyal at Anand Rathi said, "We expect Bharat Electronics (BEL) to see strong growth going forward due to many factors such as: 1) Moving towards self-reliance in defence, 2) Robust pipeline and focus of exports by GOI 3) Strong order inflow to drive the revenue growth and 4) Healthy profitability and return indicators."

BEL Achieve Record Turnover: As per the exchange filing of BEL issued on April 1, "Navratna Defence PSU Bharat Electronics Limited (BEL) has achieved a turnover of around Rs. 19700 Cr (Provisional & Unaudited), during the Financial Year 2023-24, against the previous year's turnover of Rs. 17,333 Cr registering a growth of 13.65%."
In the fiscal year 2023-24, BEL successfully secured orders worth around Rs. 35000 Cr. With this, the total order book of BEL as on April 1st, 2024, stands at around Rs. 76000 Cr, added the press release.

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%.

Bharat Electronics About: Established in 1954, BEL engages 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 Macquarie. 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.