Brokerage Axis Securities is the latest to recommend on defence PSU giant, Bharat Electronics which is one of the best-performing stocks in May 2024. BEL is suggested to BUY for the short-term target as low as 2 weeks, with the potential of 11% returns ahead. In May 2024, BEL stock rallied by nearly 27%.
BEL Share Price:
The leading defence stock exited May month at Rs 296.95 apiece with a market cap of Rs 2,17,063.88 crore. Overall, in May 2024, BEL surged by 26. 50%. In six months, the stock zoomed by 93%, while YTD and BEL gained by nearly 61%.
BEL emerges as a multi-bagger with gains of 162.09% in a year, while in 5 years, the upside is about 722.58%. BEL's all-time gains are around a breathtaking 134,877.27%. The stock merely stood at Rs 0.22 on January 1, 1999.
BEL is crorepati making stock. An investment of Rs 10,000, 25 years ago, now becomes Rs 1,34,97,727 or Rs 1.34 crore with gains of 134,877.27%.
Axis Securities On BEL:
The brokerage added BEL stock to its positional pick. The entry price level in BEL is around Rs 292.70 to Rs 295.70 for a target price of Rs 329 with a stop loss of Rs 289.70 apiece. This suggests up to 10.8% potential upside in 5-15 days by BEL stock.
According to the brokerage, in the last 1 year, Bharat Electronics Ltd has beaten the Nifty PSE by 43.14% (CAGR difference). However, the volatility of Bharat Electronics Ltd is Higher than the Nifty PSE volatility by 0.49%.
Further, the brokerage added that for 7 out of the Last 12 Months, i.e. 58% of the time it has beaten Index returns. Among other fundamentals, in 4 out of the last 5 years, BEL's PAT Growth has been high, while in 5 out of the last 5 years, the ROE has been high, and lastly, in 5 out of the last 5 years, Debt - The equity ratio has been low.
BEL Dividend:
BEL will pay a Final Dividend of Rs.0.80 per Equity share (having a face value of Rs.1/- each) and the same is subject to the approval by the Shareholders in the ensuing Annual General Meeting of the Company.
In 2024, BEL has delivered hefty dividends so far. BEL turned ex-dividend in March and February of 2024, for a dividend payout of 70% each valuing Rs 0.70 per share each, totalling 140% or Rs 1.4 per share so far in the current year.
Apart from dividends, BEL 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.
Meanwhile, 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.
BEL Earnings:
In the fourth quarter, BEL's consolidated PAT stood at Rs 1,796.67 crore, as against Rs 1,382.01 crore in Q4FY23 and Rs 860.26 crore in Q3FY24. Consolidated revenue stood at Rs 8,564.08 crore, as against Rs 6479.12 crore in Q4FY23, and Rs 4,162.16 crore in Q3FY24.
FY24 revenue came in at Rs 20,268.24 crore versus Rs 17.734.44 crore in FY23. While PAT stood at Rs 3,985.24 crore in FY24, compared to Rs 2,986.24 crore in FY23.
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