BEL Vs BDL Stock Splits, Bonus, Dividends: BUY These 2 Super Defence PSU Stocks On June 14?

Ahead of the trading session of June 14, an analyst at Prabhudas Lilladher has recommended buying in the top two defence PSU stocks namely Bharat Electronics (BEL) and Bharat Dynamics (BDL). Both stocks are among the top gainers in the defence sector and touched new highs in early of June. There is a buying opportunity in the two stocks for short-term gains.

Bharat Electronics (BEL):

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher has suggested a buy-in BEL share price for a target of Rs 315 with a stop loss of Rs 294. Currently, BEL's share price is at Rs 300.95 apiece, after gaining by 3.6% on June 13 with a market cap of Rs 2,19,987.79 crore. BEL stock has surged by 63% YTD.

Bonus Issue: So far, the stock distributed three bonus shares in less than a decade. BEL rewarded investors with a bonus issue of 2:1 in September 2022. Before this, the company paid up to a 1:10 bonus share in September 2017 and another 2:1 in September 2015.

Stock Split: The only time BEL stock was sub-divided was in March 2017 in the ratio of 10:1. 1 equity share having a face value of Rs 10 each was split into ten equity shares with a face value of Rs 1 each.

Dividend: Since August 2001, the company delivered up to 50 dividends, as per Trendlyne data. The company has recommended a final dividend of Rs 0.80 per share for FY24, which will be the third payout in 2024 so far. 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.

Bharat Dynamics (BDL) Share Price:

Prabhudas Lilladher analyst has suggested BUY on BDL share price for a target of Rs 1557 apiece with a stop loss of Rs 1455. Currently, BDL shares are at Rs 1,490.80, after rising by 4.9% on June 13 with a market cap of Rs 54,647.14 crore.

The stock's 52-week high and low are at Rs 1,660 apiece and Rs 450.50 apiece respectively. YTD, the stock zoomed by 73%.

Bonus Shares: BDL has not issued any bonus shares.

Stock Split: However, the stock recently split into a 1:2 ratio, meaning its face value of Rs 10 each for equity shares split into two to the face value of Rs 5 each with effect from May 24, 2024.

Dividend: Meanwhile, the stock has declared up to 12 dividends since September 2018. The upcoming final dividend payout is of Rs 0.85 per share (face value of Rs.5/-each) for FY24. For overall FY24, the company's dividend will be Rs 9.7 per share in FY24.

Comparing the two stocks' fundamentals, as per Trendlyne data, BEL beats BDL by 25.2% in terms of revenue growth YoY. While BEL also beats BDL by 63.8% in revenue growth QoQ. However, BDL outperformed BEL in terms of net profit by 59% YoY and 4.8% QoQ.

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.

While 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.

Apart from the two defence PSU stocks, Prabhudas Lilladher analyst also recommends BUY on Dishman Carbogen Amcis for a target price of Rs 182 with a stop loss of Rs 170.

Moreover, on June 14, the analyst expects Nifty 50 to have support at 23,250 and resistance to be around 23,550. Bank Nifty's support and resistance are seen around 49,500 and 50,200.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, 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.