BDL Vs BEML Vs BHEL: Stock Splits, Bonus Issues, Dividends, Which Defence PSU Stocks To BUY/HOLD/SELL?

Apart from leading defence PSU stocks such as HAL and BEL, other promising CPSE stocks have given double-digit returns in 2024 so far. These are BHEL, Bharat Dynamics, and BEML. All three companies are engaged in aerospace and defence projects.

Bharat Dynamics:

Share Price: After the market hours of June 21, BDL's share price ended at Rs 1533.90 apiece on BSE, with a market cap of Rs 56,227.02 crore. The stock's 52-week high and low are at Rs 1,660 and Rs 450.50 apiece respectively. YTD, the stock is up by 78%.

Bonus Issue: The company has never carried any bonus issue.

Stock Splits: This year, in May month, BDL carried its first-ever stock split in the ratio of 1:2.

Dividends: BDL has recommended a final Dividend @ Rs 0.85 per share (face value of Rs.5/-each) for FY24. In April 2024, BDL turned ex-dividend for an interim dividend payout of Rs8.85 apiece for FY24. Since, September 2018, BDL has delivered up to 12 dividends.

BUY/SELL: As per Trendlyne data, the consensus recommendation from 7 analysts for Bharat Dynamics Ltd. is BUY. EPS is expected to grow by 31.6% in FY25. Brokerage Antique Stock Broking recommended BUY with a target price of Rs 1,641 on BDL.

Headquartered in Hyderabad, Bharat Dynamics Limited (BDL), was incorporated on 16 July 1970 as a Public Sector Undertaking under the Ministry of Defence, Government of India to be the manufacturing base for guided missile systems and allied equipment for the Indian Armed Forces.

Since its inception, BDL has been working in collaboration with DRDO & foreign Original Equipment Manufacturers (OEMs) for the manufacture and supply of various missiles and allied equipment to the Indian Armed Forces.

BEML:

Share Price: This defence stock ended at Rs 4363.80 apiece, down by 2% on BSE with a market cap of Rs 18,172.83 crore on June 21. The stock's 52-week high and low is at Rs 4,875.95 and Rs 1,520 apiece respectively.

Bonus Issue: BEML has never given bonus shares to investors up till now.

Stock Split: Just like bonus shares, BEML has not yet carried any stock splits.

Dividend: Since August 2001, BEML has delivered up to 33 dividends. In February 2024, the stock turned ex-dividend for a payout of Rs 5 per share which is its latest.

BUY/SELL: As per Trendlyne data, the consensus recommendation from 2 analysts for BEML Ltd. is BUY. EPS is expected to grow by 30.7% in FY25. Antique Stock Broking set Rs 5,216 as the target price with a buy recommendation.

BEML Limited, a 'Schedule 'A' Company under the Ministry of Defence, Govt. India plays a pivotal role and serves India's core sectors like Defence, Rail, Power, Mining and Infrastructure. The PSU undertakes the manufacturing of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore Complex.

BHEL:

Share Price: Unlike the other two peers, BHEL's stock price ended above 0.5% on June 21 at Rs 294.95 apiece on BSE with a market cap of Rs 1,02,703.46 crore. The stock's 52-week high and low is at Rs 322.35 apiece and Rs 83.30 apiece respectively. YTD, the stock is up by 49%.

Bonus Issue: BHEL has carried two bonuses. In September 2017, the company issued bonus shares of a 1:2 ratio, following the issuance of a 1:1 bonus in June 2007.

Stock Split: BHEL has split only once. In October 2011, the stock was subdivided into a 1:5 ratio.

Dividend: BHEL did not carry a dividend in 2024 so far. In 2023, the company paid dividends of Rs 0.40 per share. Since August 2001, the company distributed up to 37 dividends.

BUY/SELL: As per Trendlyne data, the consensus recommendation from 19 analysts for Bharat Heavy Electricals Ltd. is HOLD. EPS is expected to grow by 397.3% in FY25. On the other hand, Antique Stock Broking recommended BUY for a target price of Rs 361.

BHEL was established in the year 1964 and since then it has been "Making in India" offering comprehensive products, systems, and services in various areas including power generation (thermal, hydro, gas, nuclear, and solar PV), transmission, transportation, defence, aerospace, oil and gas, and emerging sectors.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.