PSU Defence Stock To Pay Dividend Soon, Buy With Target Price Rs 125: ICICI Securities

PSU Defence sector stock, Bharat Electronics is set to pay dividend on February 24, 2023 for the financial year 2023. The shares of the company surged 3.33% intraday. ICICI Securities has recommended investors to buy BEL with target price of Rs 125 apiece. If you buy Bharat Electronics, you can get potential return of 29%. Check details below:

1. BEL Stock Performance & Return

Last trading price of BEL is Rs 97.80 apiece. The stock's 52-week high is Rs 115.00 apiece and 52-week low is Rs 62.24 apiece, respectively. The company has a market capitalisation of Rs 71,489.64 crore. The stock declined 4% in last 1-month, 9% in last 3-months, gave a return of 47% in last 1-years, and 253% in last 3-years.

2. BEL signs MoU with IAI for LORA Weapon System

Bharat Electronics Ltd (BEL) has signed a MoU with Israel Aerospace Industries (IAI) for domestic manufacture and supply of its LORA Weapon System for the Indian Triservices. The state-of-the-art strategic weapon system weapon will be manufactured by BEL, as the prime contractor, based on the workshare arrangement with IAI.

3. BEL Valuation

According to ICICI Securities, "We believe BEL has sound growth potential; however, the orderbook is lingering at a 2-year low, which remains the key concern. We believe Q4FY23 is critical as the company expects orderbook accretion of Rs155bn. We value BEL at Rs125/share on 25x FY24E EPS. Maintain BUY. Slower than expected orderbook build-up is the key risk to our thesis."

4. BEL About

Bharat Electronics Limited was established by Indian Government under the Ministry of Defense in 1954 to meet the specialized electronic needs of the Indian defense services.

Over the years, it has grown into a multi-product, multi-technology, multi-unit company serving the needs of customers in diverse fields in India and abroad. BEL offers products and services in a wide spectrum of technology like Radars , Military Communications , Naval Systems , Electronic Warfare Systems , Telecommunications , Sound and Vision Broadcasting, Opto-Electronics, Tank Electronics, Solar Photovoltaic Systems, Embedded Software and Electronic Components.

 

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 check with certified experts before taking any investment decision.