1:10 Split, 3 Bonus, 50 Dividends: Defence Navratna PSU Stock To Pay New Rewards; 3 Brokerages Recommend BUY

Defence giant, Bharat Electronics (BEL) has announced new rewards for its investors. On Friday, the company declared a second interim dividend of Rs 0.70 per share or 70% for FY24. The record date has been fixed on March 23. On the back of strong order flow, BEL is an attractive bet. And two brokerages have recommended buying on BEL.

BEL Share Price:

On BSE, BEL's share price ended at Rs 188.85 apiece, down by 3.55% with a market cap of Rs 1,38,045.17 crore.

BEL's 52-week high and low stood at Rs 216.70 apiece and Rs 89.68 apiece respectively.

BEL is a multibagger. In a year, the stock has zoomed by 105.50%. From its 52-week low, BEL's share price is higher by 110.58%.

BEL Dividend:

As per the regulatory filing, in a meeting held on March 15, the company's board members declared a second interim dividend of Rs 0.70/- (70%) per equity share of Rs 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 has been fixed on March 23, 2024.

Earlier, BEL paid its first interim dividend of also Rs 0.70 apiece or 70% for FY24. In FY23, the payout was 180% amounting to Rs 1.8% per share.

On the current market price, BEL has a dividend yield of 0.95%.

As per Trendlyne data, BEL has delivered up to 50 dividends since August 2001.

Among other corporate affairs, BEL has also paid 3 bonuses and once carried a stock split for investors.

BEL Stock Split:

The aerospace & defence major 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.

BEL Bonus Share:

In a decade, BEL has paid three bonuses to its shareholders since 2015.

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.

BEL Share Price Target:

HDFC Securities:

The brokerage has recommended BUY on BEL for a target price of Rs 218, which signals over 15% upside ahead. The buy call has a four-quarters time frame.

UBS:

Leading brokerage UBS has set a very high target on BEL. In its latest research note, UBS said, "Building in upward surprise in FY24E new orders, we upgrade our FY24 inflow estimates for the second consecutive time (within three months), retaining our consensus-leading growth. We believe sharply higher new orders reflect fast-tracking of the defence pipeline, which could help BHE sustain a consistent order book ramp-up, justifying higher valuations akin to industrial peers."

Accordingly, UBS' note added, "We raise our PT to Rs257 (from Rs205) and maintain Buy, assigning a 35x PE to March '26E earnings (vs 30x earlier), building in a lower 10% discount to industrial peers (vs 25% 10-yr avg), given better earnings/new orders momentum. While we are positive on both BHE/HNAL in line with our preference for incumbent SOEs, we prefer HNAL over BHE given significant new order catalysts over the next 12-18 months, material scope for manufacturing scale-up etc."

Antique Stock Broking:

The brokerage has also recommended buying for a target price of Rs 221 ahead.

So far, in FY24, BEL has accumulated orders totalling Rs 32,716.33 Cr in the current financial year, highlighting the company's continued growth and success in the defence sector.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.