Bharat Electronics (BEL) has witnessed healthy buying momentum over the past five sessions, rising by 1.1% on NSE. BEL which is a crorepati-making stock with zero debt and strong fundamentals, is going to be in focus next week due to its payment of final dividend of Rs 0.90 per share.
The record date is just a day before Independence Day. Ahead of the reward, brokerages like Motilal Oswal has recommended BUY with its highest target price of Rs 490 apiece.
Bharat Electronics Share Price:
On NSE, after market hours, BEL stock closed at Rs 389.30 apiece, with a market cap of Rs 2,84,569.69 crore. BEL is among the largest defence companies of India and a PSU. The stock is less than Rs 11 away from hitting the Rs 400 mark.
BEL's 52-week high and low are at Rs 436 apiece and Rs 240.25 apiece, respectively. YTD, the defence PSU giant is up by 32.5%. But BEL is among the multibaggers in the defence basket.
In 5-years span, BEL shares jumped by a whopping 1,077%. While its all-time gains are mind-boggling at 176,854.55%. Once upon a time, BEL shares stood at Rs 0.22 per share on January 1, 1999. These prices are adjusted to the stock split, bonus issues and dividend distribution.
How BEL Is Crorepati Making Stock?
For example, if an investor held Rs 10,000 shares in BEL on January 1, 1999. Then, at 176,854.55% all-time gains, this investment value would become a corpus of Rs 1,76,95,455 or Rs 1.769 crore.
However, it needs to be noted that this is just an example. The real gains in BEL stock will vary from investor to investor, depending on their investment.
Bharat Electronics Dividend:
In its annual report for FY25, BEL said, it's Register of Members and Share Transfer Books will remain closed from Friday, 15 August 2025 to Sunday, 17 August 2025 (both days inclusive) to determine entitlement of Members for the payment of dividend for the financial year ended 31st March 2025, if declared at the AGM.
Also, BEL revealed that during its meeting on May 19 this year, its board of directors suggested a final dividend payout of Rs 0.90 (90%) per equity share of Re 1/- each fully paid.
BEL said, "The Final Dividend for the year 2024-25, if declared at the AGM, will be paid within 30 days from the date of declaration, to those Members whose names appear on the Company's Register of Members as on 14 August 2025 in respect of physical shares. However, in respect of shares held in dematerialized form, the dividend will be payable to those persons whose names appear as beneficial owners as at the closure of the business hours on 14 August 2025 as per the details furnished by the depositories."
So far, since August 2003, BEL shares have rewarded investors with at least 50 dividends. It has a current yield of 0.59%.
Apart from dividends, BEL also holds steady record of issuing bonus and carrying stock sub-divisions.
Bonus Issues: BEL has rewarded investors with 3 bonuses so far. The first bonus issue was of 2:1 in September 2015, followed by a 1:10 bonus issue in September 2017. The latest bonus issue was of 2:1, and its ex-date was in September 2022.
Stock Split: BEL shares have split in the ratio of 1:10 during March 2017. The face value of Rs 10 each was trimmed to Re 1 each.
Buy Zero Debt Defence PSU Stock BEL?
According to Motilal Oswal's note, BEL has a robust pipeline of upcoming orders across multiple high-value programs, providing strong revenue visibility beyond FY26. Key expected orders are: 1) QRSAM order estimated at INR250b, for which DAC approval has been received in July and it is expected to be finalized by 4QFY26; 2) multiple subsystem orders for the MF-STAR radar program, which are currently under configuration and pricing discussions with shipyards and are likely to be awarded in 2HFY26, with some spill-over into 1QFY27; 3) Shatrughat and Samaghat electronic warfare (EW) systems with a combined opportunity size of INR65b are also progressing well and RFP for one program has already been issued; 4) follow-on order for 97 LCA Mk1A aircraft (excluding Uttam AESA radar) worth INR30b; and 5) drone and loitering munition programs (e.g., Archer UAV, MALE-class drones) expected in the next 12-18 months.
If timely converted, these opportunities could not only bolster the INR270b inflow guidance but also support 15-17% annual growth over the medium term, aided by BHE's rising share in indigenous and strategic systems, as per the analysts.
On the valuation, Motilal's analysts added, "BHE is currently trading at 47.0x/39.3x/33.0x on FY26E/FY27E/FY28E EPS. We maintain our two-year forward TP of INR490 based on 45x Sep'27E earnings and maintain BUY rating on BHE." This will be the highest target price on BEL.
About Bharat Electronics Limited:
Bharat Electronics Limited is a Navratna PSU (under the Ministry of Defence, Government of India) established in the year 1954. BEL is engaged in the business of Defence Electronics empowering the Nation's Defence Forces and in other chosen areas of Professional Electronics.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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