Defence PSU Stock Received Orders Worth Rs 5900 Cr, Buy, Say Prabhudas Lilladher

Bharat Electronics Limited (BEL) has received Orders worth Rs. 5900 Crore as of today in the financial year 2023-24. In a press release on Tuesday, June 20, 2023, titled 'Bharat Electronics (BEL) receives Orders worth Rs.5900 Crore' informed the exchange about the development.

Orders includes

1)Order for 2 Regiments of Improved Akash Weapon System (AWS) with upgrades from BDL for a value of Rs39.1bn. The improvements incorporated include high altitude operation, simultaneous engagement of multiple threats over 360 degrees, missiles fitted with RF Seeker and reduced foot print. Akash is an all-weather, point/area air-defence weapon system intended for defending vulnerable points/areas against threats emanating from low, medium and high altitudes. The system uses high mobility vehicles for mobile application.

2)Other significant orders received worth Rs19.8bn include orders for Shakti EW & Sanket MK III (Naval Systems), GBMES & GBVU Com Jammer systems, MKBT systems, IFF-MKXII Crypto Modules & Up gradation of SDP & Display of Rohini Radar, Training system for CMS P15B & CAMC of CMS for P 28 etc.

Prabhudas Lilladher Comments

Brokerage firm Prabhudas Lilladher said, "We believe it will be able to meet management guidance of order inflows of Rs200bn in FY24, driven by strong order pipeline comprising of equipment for shipbuilding, Electronic warfare system, Fuse requirement by army etc. We remain positive on long-term growth story of BEL given 1) strong order backlog & order pipeline 2) diversification in newer business verticals like, medical equipment's, hydrogen fuel cell, EV batteries etc., 3) focus on export markets (Egypt, Malaysia etc.) and 4) govt's focus on product indigenization. The stock is currently trading at PE of 27x/23x FY24/25E. We have Buy rating on stock with TP of Rs125 valuing it at PE of 23x FY25E."

Stock Movement

Meanwhile, the stock of BEL is currently trading at Rs. 125.45 apiece, up 0.24% from its previous close. It recorded the 52 week high at Rs. 127.25 apiece on 16 June 2023, and 52 week low at Rs. 74.57 apiece on 20 June 2022, respectively.

The stock surged 3.83% in 1 week. It gave 17.8% in 1 month, and 35.39% in 3 months, respectively. It gave 64.23% in 1 year. It gave a multibagger return of 372.39% in 13 years. It gave 245.83% positive return in 5 years.

Disclaimer - The above-mentioned PSU stock received orders, Prabhudas Lilladher assigns Buy on the stock. 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.