Defence PSU giant, Bharat Electronics (BEL) is a multibagger in the longest run. In the trading week from September 23-27, BEL share price surged nearly 4% on NSE and traded above Rs 290 levels. The latest uptrend in BEL comes after global brokerage Macquarie gives 'OUTPERFORM' rating on the stock. The broker has also set a target price of Rs 350 on BEL, which would be its new all-time high.
BEL Share Price:
On NSE, after the September 27 trading session, BEL stock ended at Rs 291.95 apiece, 1.5% with a market cap of Rs 2,13,408.99 crore. YTD, BEL stock surged nearly 58%.
BEL stock witnessed a positive trading week after falling broadly for over a month. From August 27 to September 27, the stock dipped by nearly 3%. At the same time, the stock is trading below 14.3% from its 52-week high of Rs 340.50 apiece which is also its current record level.
However, BEL recovered significantly during September 23-27 trading week, by gaining at least 3.9%.
So far in 2024, the stock is still in green with an upside of 57.85%, In the long term, BEL is among super stars in defence basket. In 1 year, the stock gained by 116.18%, while in 5 years, the uptrend is a whopping 709.85%.
But BEL's all-time gains are by a mind-boggling 132,604.55%. BEL shares once upon a time stood at Rs 0.22 per share on January 1, 1999.
The stock price has been adjusted over the years due to its bonus issue, stock splits and dividends.
Dividend: The defence giant has delivered at least 51 dividends since August 2001, as per Trendlyne data. In the last 12 months, BEL distributed about Rs 2.20 dividend per share. Currently, it has a dividend yield of 0.75%.
Bonus Issue: Since PM Modi's government came into power, in 2014, BEL has delivered a whopping 5 bonuses. The first bonus issued by BEL was in September 2015 in the ratio of 2:1, while the second bonus was in the 1:10 ratio in September 2017. The latest bonus issue was of 2:1 which was delivered in September 2022, post Covid-.
Stock Split: BEL has split only once since listing. The first stock split of BEL was in the ratio of 1:10, which took place in March 2017. That time, BEL's face value of Rs 10 each was cut to Rs 1 each.
BEL Macquarie Recommendation:
The global broker has given an 'outperform' rating on BEL, due to the company being on track to meet its FY25 guidance. Also, the brokerage said that BEL's current order backlog is predicted to support growth trends ahead, however, it also believes that supply chain challenges should be closely watched.
For BEL, the focus is on order inflows in H2 of FY25, coupled with management commentary after Q2FY25 earnings, and execution of the pipeline.
Following this, Macquarie has raised the target price on BEL to Rs 350. There is potential for a 20% upside in BEL compared to the current market price on NSE.
On Friday, BEL announced the incorporation of BEL IAI AeroSystems Private Limited, a joint venture between Bharat Electronics Limited and Israel Aerospace Industries Limited, Israel.
The new JV is expected to provide product support including repair and maintenance and related activities for the Medium-Range Surface to Air Missile (MRSAM) System deployed and used in India. BEL is barring a 40% stake in the JV.
Also, recently, BEL confirmed its collaboration with Canada-based Reliasat Inc. The Teaming Agreement aims at leveraging BEL and Reliasat's capabilities in the domain of space.
Earlier, in September, BEL revealed that it has accumulated orders totalling Rs 7, 075 crore in the current financial year.
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