Bharat Electronics Ltd: PSU Board Approves Stock Split, Stock Rises 20% In 1 Month

Bharat Electronics Limited is an Indian state-owned aerospace and defence company with about nine factories, and several regional offices in India. It is owned by the Indian Government and primarily manufactures advanced electronic products for the Indian Armed Forces, according to the official website of Bharat Electronics Ltd (BEL).

The board of directors of the company has given their nod for bonus issue proposal. The company has a market capitalisation of Rs 67,213.42 crore. Check key takeaways below:

1. Bharat Electronics Ltd Approves 2:1 Bonus Issue

The board of director of the company in its regulatory filing dated August 4, 2022 stated, "Issue of Bonus shares to the Shareholders of the Company in the ratio of 2:1 (Two bonus equity shares for every One equity share held) by capitalizing 4,87,31,85,886/-(Rupees Four Hundred Eighty Seven Crore Thirty One Lakh Eighty Five Thousand and Eight Hundred Eighty Six only) standing to the credit of the free reserves and surplus of the Company."

The company also seeks to increase its authorized share capital and stated, "Alteration of existing Clause-V of the Memorandum of Association of the Company for increase in authorized share capital. The increase in Authorised share capital from Rs.250 Crore to Rs.750 Crore was intimated to Stock Exchanges vide our letter dated 28th January, 2022, stating that the same is subject to approval of Administrative Ministry. The Administrative Ministry accorded approval for increase in Authorised share capital from Rs.250 Crore to Rs.750 Crore vide its letter dated 1S1 August, 2022."

2. Bharat Electronics Ltd Stock Outlook

The current market price of the stock is Rs 275 apiece on BSE. The stock fell 2.90% at the close of the trading yesterday, August 5, 2022. The 52-week high is Rs 287 apiece while the 52-week low of the stock is Rs 162 apiece. The ROE of the stock is Rs 23.11 and PE is 24.88. It is a company with high TTM EPS. Brokers have upgraded the recommendation or target price for the stock. The stock has given a return of 56% in 1 year, 198% in 3 years and 69% in 5 years. In the last one month only, the stock has given a return of 20%.

3. Bharat Electronics Ltd Dividend History

The company has maintained a good dividend history and regularly declared dividend in the last 5 years. It has declared an equity dividend of 450% or Rs 4.5 per share for the year ending March 2022. It declared an equity dividend of 150% or Rs 1.50 per share on May 23, 2022 and the ex-dividend date is 8 August, 2022. 

4. About Bharat Electronics Ltd

Guided by a farsighted vision to make the country self-reliant in Defence electronics, Bharat Electronics Limited (BEL) was set up in Bangalore in 1954 by the Government of India under the Ministry of Defence (MoD). From a humble beginning, BEL has come a long way. It is now a Navratna PSU and India's foremost Defence electronics company. The current market capitalization of BEL is Rs 69,296.70 crore.