70% Dividend, 10:1 Split: Multibagger Defence PSU To Hold Dividend Meet, Buy For TP Rs 300

Large cap aerospace & defence sector company, Bharat Electronics Ltd (BEL) will consider financial results and interim dividend on May 20, 2024. Meanwhile, brokerage firm Nomura is bullish on country's defence sector and assigned buy call to Bharat Electronics share with target price of Rs 300 per share. Current market price of Bharat Electronics Ltd share on BSE is Rs 227.05 per share. If you buy Bharat Electronics shares now, you can fetch potential return of 32.13%. BEL shares gave return of 63% in last 6-months and soared 110% in last 1-year. Earlier this this year BEL shares traded ex-dividend on March 22, 2024 for 70% dividend. More details below:

Bharat Electronics To Consider Dividend, Results: As per the regulatory filing of Bharat Electronics, ""We wish to inform that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, the 20*h May, 2024 to consider and approve, inter alia, Audited Standalone & Consolidated Financial Results for the quarter and year ended 31S1 March, 2024 and also to consider recommendation of final Dividend for the financial year 2023-24, if any."

Nomura On BEL: Nomura appears upbeat and recommended traders to buy BEL share with target price of Rs 300.
Nomura anticipates a $138 billion opportunity for the defence sector from FY24 to FY32. The analyst agreed that there could be further legs in the upcycle, as the government is following through on all defense-related policies. Country's defense sector is in a good position to fulfill future requirement of the armed forces. The analyst noted the government's soaring procurement from local companies, which garnered more attention to the industry.

BEL Share Performance & Return Over Years: The 52-week high price of Navratna PSU Bharat Electronics share on BSE is Rs 241.50 per share (as on 26/04/2024) and 52-week low price is Rs 105.75 per share (as on 19/05/2023), respectively. Bharat Electronics shares declined 4.96% in last 2-weeks, gave return of 26% in last 3-months, zoomed 206% in last 2-years, and rallied 661% in last 5-years.

BEL Bonus History: The PSU's last bonus issue was declared in 2022 in the proportion of 2:1. BEL share went 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.

Bharat Electronics Ltd Stock Split History: The PSU split the face value once since March 16, 2017. Bharat Electronics last split the face value of its shares from Rs 10 to Re 1 in 2017.BELshare traded an ex-split as on March 16, 2017.

BEL Dividend History: Bharat Electronics announced 50 dividends since August 27, 2001. In last 12 months, BEL declared an equity dividend amounting to Rs 2.00 per share. At the current share price of Rs 235.10 per share, BEL share offers dividend yield of 0.88%.

Bharat Electronics Achieved Record Turnover: As per the exchange filing of BEL issued on April 1, "Navratna Defence PSU Bharat Electronics Limited (BEL) has achieved a turnover of around Rs. 19700 Cr (Provisional & Unaudited), during the Financial Year 2023-24, against the previous year's turnover of Rs. 17,333 Cr registering a growth of 13.65%."

In the fiscal year 2023-24, BEL successfully secured orders worth around Rs. 35000 Cr. With this, the total order book of BEL as on April 1st, 2024, stands at around Rs. 76000 Cr, added the press release.

Bharat Electronics Financials: BEL announced 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 remained nearly flat at Rs 4162.2 crore as against Rs 4153 crore in the corresponding quarter of last year. EBITDA of BEL announced 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%.

Bharat Electronics About: Established in 1954, BEL engages in manufacturing of specialised electronic equipment requirements of the Indian Defence Services. BEL produces a wide range of equipment for areas such as defence communication, radars, naval systems, c4i systems, weapon systems, homeland security, telecom & broadcast systems, electronic warfare, tank electronics, electro-optics, professional electronic components and solar photovoltaic systems, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Nomura. 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.