1:5 Vs 1:2 Split: Not BEL OR HAL, But This Two PSU Defence Stocks Are Hot To Buy On March 4; PL Recommends

Defence PSU Stocks: With market expected to continue its volatile trend ahead, brokerage Prabhudas Lilladher has selected two defence PSU stocks to buy on Tuesday, March 4th session. These two are neither giants like BEL or HAL, but instead BHEL and Mazagon Dock Shipbuilders. Both he stocks have witnessed bearish trend year-to-date, creating a buy-on-dips opportunity for short term gains. Nonetheless, the two stocks are multibagger in the long-term.

BHEL Share Price:

Despite downward trend in benchmarks on March 3rd, BHEL share price closed at Rs 185.45 apiece, up by 4% on BSE with market cap of Rs 64,574.86 crore. The stock's 52-week high and low is at Rs 335.40 apiece and Rs 176 apiece respectively. YTD, BHEL is down by 20.5% as of now. However, in 5 years, the stock has surged by nearly 528%.

Dividends: As per Trendlyne data, the stock has given up to 36 dividends since September 2003. In the last 12 months, the payout was of Rs 0.25 per share.

Stock Split: BHEL has sub-divided its shares only once. In October 2011, BHEL shares turned ex-split in the ratio of 1:5, where the face value of Rs 10 was cut to Rs 2 per share.

Bonus Issue: Also, the company has carried two bonus rewards since 2007. The first bonus issue was of 1:1 in June 2007, followed by 1:2 bonus issuance in September 2017.

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher has recommended BUY on BHEL on March 4th session for a target price of Rs 200 apiece with stop loss of Rs 181.

BHEL is India's largest engineering and manufacturing enterprise in the energy and infrastructure sectors. Established in 1964, we are a leading power equipment manufacturer globally and one of the earliest and leading contributors towards building an Aatmanirbhar Bharat.