10:1 Split, 2:1 Bonus, 80% Dividend: Defence PSU BEL That Gained 140,514% On NSE, Wins Orders Of Rs 4,803 Cr

Zero-debt defence PSU giant with Navratna status, Bharat Electronics (BEL) whose all-time gains are mind-blowing by 140,514% on NSE, will be in focus in the next week's trading session as the company wins huge orders. BEL has bagged new orders worth Rs 4,803 crore in the current financial year.

As per the regulatory filing, BEL announced that it signed a contract valued at Rs.3,172 crore with Armoured Vehicles Nigam Limited (AVNL) on June 28, 2024, at AVNL Headquarters in Chennai.

The new order includes the supply and installation of an advanced, indigenously designed and developed Sighting and Fire Control System (FCS) for the upgrade of BMP 2/2K Tanks of the Indian Army, along with a comprehensive Engineering Support Package.

Furthermore, BEL also won new orders worth Rs 481 crore since its last disclosure on May 22, 2024, which comprised of Doppler Weather Radar, Classroom jammers, spares and services etc.

With that, the total orders received in FY25 so far are to the tune of Rs 4,803 crore.

BEL share price ended at Rs 309.35 apiece on NSE after market hours of June 28, 2024, with a market cap of Rs 2,26,128.01 crore. BEL is closing the gap to its 52-week high of Rs 323 which was witnessed on June 3, 2024. It will be keenly watched if the new order book will likely push BEL shares to a new record high.

BEL is a leading defence PSU and has given impressive returns to its investors. The company is debt-free, making it even more attractive.

YTD, BEL stock is up by 67% on NSE, while in a year, the stock rallied by 146%. In 5 years, BEL stock zoomed by 756.21%. But its all-time gains on NSE, are breathtaking by 140,513.64%, making even Crorepati in the longest run. The stock was merely at Rs 0.22 per share 25 years ago, on January 1, 1999.

Going ahead, BEL will be in focus as it is set to pay a Final Dividend of Rs.0.80 per Equity share (having a face value of Rs.1/- each). The record date for the final dividend is likely to be announced soon.

BEL is a top dividend distributor in the defence segment. Apart from that, BEL also has carried only one stock split so far. It was in 2017, when 1 BEL share split into ten smaller shares effective from March 16. The face value split from Rs 10 to Rs 1. Also, BEL has paid three bonuses to its shareholders since 2015, in total it distributed 5 bonuses. The first bonus reward of a 2:1 ratio in September 2015, followed by 1:10 and 2:1 bonus issues in September 2017 and 2022 respectively.

Recommending BUY as well, Antique Stock Broking has set a target price of Rs 339 apiece. JM Financial has also suggested BUY on BEL stock with a target price of Rs 320. In the buy recommendation list is also HDFC Securities on BEL shares.

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.