1:10 Split, 129,059% Up: Zero-Debt Defence PSU BEL To ADD For Rs 350 TP; 80% Dividend Payout In 2 Weeks

Debt-free defence PSU giant, Bharat Electronics (BEL) witnessed slight buying in a volatile market trend on Monday, September. However, BEL continues to give zero returns in a month, but is still among top performing defence stocks on BSE and NSE in the long-term. The company is scheduled to pay 80% dividends to investors in next two weeks. Brokerage ICICI Securities is the latest to recommend on BEL stock.

The brokerage has suggested ADD on BEL share price for a target price of Rs 350.

In its latest report, ICICI Securities said, "We believe the two recent back-toback developments: 1) Cabinet Committee of Security's (CCS) approval for AL-31FP order; and 2) AoNs worth INR 1.45trn for 10 platforms allay concerns that the
street might have regarding the lack of orders for defence sector."

Additionally, the brokerage added that the high level of indigenisation content implies attractive opportunities for players in domestic defence ecosystem.

ICICI Securities note further said, "We await further developments pertaining to progress on Pinaka and MRSAM orders, that are pending for some time now."

Accordingly, the brokerage said, among DPSUs, "we believe BEL (TP: INR
350; ADD) can benefit due to the trickle-down effect from these orders."