2:1 Bonus Share, 70% Dividend: Anand Rathi Lists Defence PSU In Value Pick, Buy For TP Rs 250

Brokerage firm Anand Rathi has recommended buy call to multibagger defence PSU Bharat Electronics Ltd share with target price of Rs 250 per share. Current market price of Bharat Electronics share on BSE is Rs 222.95 per share. If you buy Bharat Electronics shares now, you can fetch potential gain of 12.13%. Bharat Electronics shares already delivered multibagger returns to shareholders in last 1 year. BEL share zoomed 127% in 1-year period and offered eye-popping returns of 591% in last 5-years. The company also recommended second interim dividend of Re 0.70/- (70%) per equity share of Re 1/- each for the financial year 2023-24. In 2022, it announced bonus share in the ratio of 2:1. More details pertaining to BEL below.

Valuation By Anand Rathi: The brokerage has listed various factors that will contribute to the growth of BEL shares. Analyst 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 Accomplishes Record Turnover Of Rs 19700 Crores: According to the press release 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 Shares Performance: The 52-week high price of Bharat Electronics shares on BSE is Rs 225.45 per share and 52-week low price is Rs 97.57 per share, respectively. BEL PE stand at 44.78 and the EPS (TTM) stands a 1.22. The market cap is Rs 1,62,861.87 crore. Bharat Electronics shares zoomed 60% in last 6-months, soared 206% in last 2-years, and offered return of 409% in last 3-years. BEL stock zoomed by 1845% in last 10-years.

BEL Recent 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."

The record date for interim dividend was 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.

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 Anand Rathi. 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.