140,673% Up, 10:1 Stock Split, 80% Dividend: Defence PSU BEL Makes Investors Crorepati; BUY For Rs 330-400 TP

Leading defence PSU giant, Bharat Electronics (BEL) is a crorepati making stock in the long term. Merely Rs 10,000 of investment in BEL stocks 25 years ago, is now having a corpus of Rs 1.40 crore. This would be an eye-bulging 140,672.73%. Currently, the stock is below the Rs 310 level, and there is further upside potential. BUY recommendation for target prices between Rs 330 to Rs 400 has been set.

After market hours of June 14, BEL stock ended at Rs 309.7 apiece up by 2.92% on NSE with a market cap of Rs 2,26,383.85 crore.

Earlier this month, BEL stock touched a new 52-week high of Rs 323 apiece, and the stock has more than doubled from a 52-week low of Rs 117.90 apiece. In 2024 so far, BEL is up 68%.

In a year, the stock gave nearly 154% returns, and in 5 years, the surge is over 733%. The stock's all-time gains are a whopping 140,672.73%. BEL shares were merely Rs 0.22 on January 1, 1999.

BUY BEL stock still?

As per Trendlyne data, the consensus recommendation from 26 analysts for Bharat Electronics Ltd. is BUY. Of the total, 20 analysts are optimistic about BEL and have suggested 'STRONG BUY' and 'BUY' on BEL.

Technical analyst Manas Jaiswal told CNBC Awaaz that levels of ₹320 and ₹325 are crucial for Bharat Electronics and once those get taken out on a sustained basis, the stock will see the next leg of up move. He added that in the next leg of the up move, the stock can test levels of ₹375 to ₹400 on the upside. Hence, he suggests holding BEL shares for the mentioned target while keeping the stop loss at Rs 265.

Also, brokerage Antique Stock Broking has recommended BUY with a target price of Rs 339 in BEL. The brokerage expects BEL's EPS to touch Rs 6.2 by the end of FY25, and further surge to Rs 7.7 by FY26E. Return on equity is seen at 26.1% in FY25, while return on capital employed is seen at 27.1%.

Last month, the Navaratna DPSU received orders worth Rs.1150 Crore till date during the financial year 2024-25. The major orders include AMC of Akash Missile System, Combat Management System for Ships, Missile Fire Control System for
ships, Laser Range Finders, Communication Network Centre etc.

Looking ahead, BEL will be in focus as it is set to pay a Final Dividend of Rs.0.80 per Equity share (having a face value of Rs.1/- each). The record date for the final dividend is likely to be announced soon.

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. 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.

About BEL. Bharat Electronics Limited (BEL) is a Navratna PSU under the Ministry of Defence, Government of India. It manufactures state-of-the-art electronic products and systems for the Army, Navy and the Air Force.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor 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.