Bharat Electronics (BEL), a zero-debt defence PSU giant, has emerged as the top pick to buy or accumulate after the company won a huge order of Rs 1,155 crore. Prabhudas Lilladher has recommended buy on BEL during the Thursday, September 12, 2024, session and also for short-term gains. BEL is a multi-bagger with robust all-time gains of a whopping 130,855% on NSE.
BEL Share Price:
On NSE, BEL stock price stood at Rs 288.10 apiece, up by 0.8% with a market cap of Rs 2,10,594.73 crore after market hours. The stock has corrected significantly from its 52-week high of Rs 340.50 apiece, while trading substantially up from its 52-week low of Rs 127 apiece.
BEL's share price has surged by 56% YTD, while it emerged as a multibagger with upside of 114.76% in 1 year. In the long-term for instance 5-year basis, the stock has rallied by 695.42%. All-time gains of BEL are a whopping 130,854.55%.
As per Trendlyne data, BEL's Debt to Equity Ratio is zero as the company is debt-free. While the Price to Earning Ratio is 49.69, lower than its sector PE ratio of 67.55. Additionally, Return on Equity(ROE) for the last financial year was 24.4%, more than 20% in the last financial year, indicating an efficient use of shareholder's capital to generate profit.
BEL New Order Win:
The Navratna PSU player has secured an order worth Rs. 850 crore from Cochin Shipyard Limited (CSL) for the supply of indigenous Multi Function Radar in X Band. This fully indigenous radar designed by DRDO and manufactured by BEL is capable of detecting, acquiring and tracking airborne targets to provide protection to naval ships.
Additionally, the company bagged orders valued at Rs 305 crore. following the last disclosure on 22 August 2024, which include navigational complex system for ships, thermal imagers, communication equipment, fire control system, gun control system, spares, services, etc.
In total, the new order win is about Rs 1,155 crore.
With the latest deals, BEL has now accumulated orders totaling Rs.7, 075 Cr. in the current financial year.
Prabhudas Lilladher ON BEL:
BEL is a top pick to buy on September 12. Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher has set an intraday target price of Rs 305 apiece with stop loss of Rs 282.
After the new order, Amit Anwani, Research Analyst At Prabhudas Lilladher said, "Company secured order worth Rs8.5bn from Cochin Shipyard for the supply of indigenous Multi Function Radar in X Band. This radar, designed by DRDO and manufactured by BEL, is capable of detecting, acquiring and tracking airborne targets to provide protection to naval ships."
Agarwal added, "BEL has also secured orders valued at Rs3.1bn which include navigational complex system for ships, thermal imagers, communication equipment, fire control system, gun control system, spares, services, etc."
Hence, Agarwal said, "The stock is currently trading at a PE of 45.4x/37.6x on the earnings of FY25/26E. We have a 'Accumulate' rating with a TP of Rs341."
BEL Corporate Actions:
Overall, BEL distributed about 220% dividend amounting to Rs 2.2 per share for FY24.
Additionally, 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. 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.
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