1:10 Split, 129,014% Up; Debt-Free Defence PSU BEL Sets Payment Date For 80% Dividend; BUY Stock For Target?

Defence PSU giant, Bharat Electronics (BEL) has announced the payment date for its 80% dividend for FY24. The company will reward investors with dividends in a little over two weeks. BEL shares have continued to fall for the past few weeks, giving a buy-on-dips opportunity as major brokers continue to recommend BUY and ADD on the stock. The zero-debt company's order book remains strong, while the long-term outlook is positive.

BEL Share Price:

BEL stock price is at Rs 284.05 apiece on NSE, after market hours of September 6, 2024, with a market cap of Rs 2,07,634.27 crore. The stock dipped significantly from its 52-week high of Rs 340.50 apiece.

Between September 2-6, the stock dipped 4.9% on NSE, while in a month, the drop is over 5.3%. However, year-to-date, BEL continues to give double-digit returns of 54%. All-time gains of BEL are a whopping 129,013.64% as of now.

BEL Dividend Payment:

As per the latest regulatory filing, BEL said, the Final Dividend of Rs. 0.80/- (80%) per equity share of Rs. 1/- each declared at the 70th Annual General Meeting of the Company held on August 28, 2024, will be paid on September 23, 2024, to eligible shareholders.

Eligible shareholders for an 80% dividend are those who held BEL shares by the end of the record date, which was set on August 14. Any buying of BEL shares after August 14, will not be eligible.

Overall, BEL is distributing a 220% dividend amounting to Rs 2.2 per share for FY24.

Apart from being a top dividend-paying defence stock, BEL also has carried only one stock split so far. It was in 2017, when 1 BEL share split into ten smaller shares effective from March 16. The face value split from Rs 10 to Rs 1. Also, BEL has paid three bonuses to its shareholders since 2015, in total it distributed 5 bonuses. The first bonus reward of a 2:1 ratio in September 2015, followed by 1:10 and 2:1 bonus issues in September 2017 and 2022 respectively.

BUY BEL Stock?

The latest recommendation on BEL stock is by ICICI Securities. The brokerage has recommended ADD on BEL for a target price of Rs 350. Antique Stock Broking has recommended BUY for a target price of Rs 381 on the stock. Also, giving a BUY recommendation, JM Financial sets a target price of Rs 360 for the company. But the highest target on BEL is Rs 390 which is set by ICICI Direct, hinting at 30.30% potential upside ahead.

Technical Analysis Of BEL:

As per Trendlyne data, the key moving averages such as RSI and MFI on BEL are stable at 34.2 and 48.7. That is because RSI and MFI below 30 mean that the stock is oversold, while above 70 indicators could signal over-buying in the stock. BEL is also trading below 6 out of 8 SMAs, and below 7 out of 9 Oscillators in the bearish zone.

Bharat Electronics Limited (BEL) is a Navratna PSU under the Ministry of Defence, Government of India. It manufactures state-of-the-art electronic products and systems for the Army, Navy and the Air Force.