2:1 Bonus Issue: Buy Multibagger PSU Bharat Electronics Shares, TP Rs 215

Bharat Electronics shares witnessed rally of 9.25% in last 1-week and 13.79% in last 2-weeks. The multibagger Navratna PSU stock operating in Aerospace & Defense is on buy call with target price of Rs 215 apiece. Bharat Electronics announced an interim dividend of Re 0.70 per share on January 29, 2024 and shares traded ex-dividend on February 9, 2024.

Bharat Electronics also recommended bonus shares in 2023 in the ratio of 2:1 implying shareholders received 2 bonus shares for every 1 share held. The ex-bonus date was September 15, 2023. Check details below:

BEL Valuation: ICICI Securities has listed several key positives of Bharat Electronics stock saying, "in our view, barring the ephemeral hiccups, BEL has both strong earnings stability and order flow visibility. Key points: 1) Execution of LRSAM worth INR 65bn, radar systems and counter-drone systems are expected to drive near term earnings. 2) Exposure to Israel is limited to a mere INR 45bn in the current order book of INR 762bn. 3) Export opportunities in Akash Weapon System might result in further earnings growth and 4) Probable orders of INR 500bn, include QRSAM (INR 200bn), but not MRSAM.

Taking cognizance of the stable earnings growth momentum, we raise our P/E multiple to 32x (earlier 30x). Maintain 'BUY' with a revised TP of INR 215 on FY26E EPS.

Bharat Electronics Shares Performance & Return: 52-week high price of Bharat Electronics stock on BSE is Rs 206.95 apiece and 52-week low price is Rs 89.68 apiece, respectively. The company has a market capitalisation of Rs 1,50,215.95 crore. Bharat Electronics shares has a PE of 41.71 and EPS 4.93. Bharat Electronics shares jumped 47% in last 3-months, rallied 54% in last 6-months, and gave return of 115% in last 1-year. In last 2-years, Bharat Electronics shares surged 210% and soared 360% in last 3-years. In last 5-years, BEL stock gained 684%.

Bharat Electronics Financials: BEL declared its net profit for the quarter ended December 31, 2023 at Rs 859.6 crore, up 40% as against Rs 613 crore announced in the similar quarter of last year. BEL's revenue was announced almost flat at Rs 4162.2 crore as compared to Rs 4153 crore in the corresponding quarter of last year. EBITDA of Bharat Electronics declared at Rs 1072.6 crore, up 24% as against Rs 863.4 crore in the same quarter of preceding fiscal. Meanwhile, margin arrived at 26%.

BEL Dividend: Bharat Electronics announced an interim dividend of Re 0.70 per equity share for the FY 2023.24. According to the regulatory filing of the PSU dated Feb 12, 2023, "In continuation to our earlier letter dated 29.01.2024, we wish to inform you that Interim Dividend of Re 0.70/- per equity share (70%) for the financial year 2023-24 declared at the Board meeting held on 29.01.2024 will be paid on 23.02.2024 to the eligible shareholders."

Bharat Electronics Dividend History: BEL announced 49 dividends since August 27, 2001. In the last 12 months, Bharat Electronics announced an equity dividend amounting to Rs 1.90 per share. If Bharat Electronics shares last trading price of Rs 205.50 is taken into consideration, it offers a dividend yield of 0.93%.

BEL Technical: It has a RSI is 71.8, RSI above 70 is considered overbought. This implies that stock may show pullback. When it comes to day MFI, MFI is 70.2, MFI above 70 is considered overbought. This implies that stock may show pullback. Promoters holding remains unchanged at 51.14% in Dec 2023 quarter. FII/FPI have increased holdings from 17.19% to 17.77% in Dec 2023 quarter. Number of FII/FPI investors increased from 1143 to 1183 in Dec 2023 quarter. Number of MF schemes increased from 267 to 300 in Dec 2023 quarter.

BEL Bonus History: The last bonus that Bharat Electronics declared was in 2022 in the proportion of 2:1. The share traded ex-bonus on September 15, 2022. Before that BEL declared bonus shares in 2017 in the ratio of 1:10 and in 2015 in 2:1 ratio.

Disclaimer: The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.