3 Bonus Issues, 70% Dividend: Buy Defence PSU For TP Rs 280, Shares Hit 3rd 52-Week High

3 leading analysts have recommended buy call for multibagger navratna defence public sector undertaking (PSU) Bharat Electronics Ltd (BEL) share with maximum target price of Rs 260-280 apiece. Current market price of Bharat Electronics share on BSE is Rs 238.90 apiece with intraday gain of 0.50% as on April 26, 2024. Bharat Electronics shares hit 3rd consecutive 52-week high on April 26, 2024.

Bharat Electronics share offered 135% return in last 1-year and gave highest return of 1805% in last 10-years. The aerospace and defence PSU announced second interim dividend of Re 0.70/- (70%) per equity share of Re 1/- each fully paid-up for the financial year 2023-24 and fixed March 23, 2024 as the record date.

Credit Rating: Earlier this year in February, BEL confirmed that credit rating agency ICRA reaffirmed the company's long-term rating at [ICRAjAAA with stable outlook. The agency affirmed the company's short-term rating at ICRA] A1+. These ratings indicate the highest credit quality in the long-term and short-term. These ratings are valid till 14th February, 2025," added the BSE filing of the PSU. More details below about Bharat Electronics shares:

Bharat Electronics Share Performance & Return: The 52-week high price of Bharat Electronics share on BSE is Rs 241.50 per share (as on 26/04/2024) and 52-week low price is Rs 101.19 per share (as on 27/04/2023), respectively. Its market capitalisation stood at Rs 1,74,630.62 crore. Bharat Electronics shares gave return of 29% year-to-date, jumped 85% in last 6-months, gained 186% in last 2-years, and surged 714% in last 5-years.

BEL Technical Outlook: Score is 73.0 indicating that the stock is technically robust. Stocks with score above 70 are considered as technically Strong. RSI is 75.8, RSI above 70 is considered overbought. This implies that stock may show pullback. MFI is 75.7, MFI above 70 is considered overbought. This implies that stock may show pullback. At 9.1, MACD is above its center and signal line, this is a bullish indicator. Number of FII/FPI investors increased from 1183 to 1261 in Mar 2024 quarter. Kotak Flexicap Fund has stake of 3.27% in BEL with 239,087,048 shares and Hdfc Pension Management Company Ltd has 1.31% stake in the PSU, according to Trendlyne.

BEL Bonus History: Bharat Electronics's last bonus issue was announced in 2022 in the ratio of 2:1. BEL share traded ex-bonus on September 15, 2022. Prior to that Bharat Electronics announced bonus shares in 2017 in the ratio of 1:10 and in 2015 in 2:1 ratio.

BEL Dividend History: Bharat Electronics announced 50 dividends since August 27, 2001. In last 12 months, BEL declared an equity dividend amounting to Rs 2.00 per share. At the current share price of Rs 238.90 per share, BEL share offers dividend yield of 0.84%.

Should You Buy BEL Share? Prabhudas Lilladher has recommended buy call for Bharat Electronics share with target price in the range of Rs 260-Rs 280 per share. Another brokerage firm Anand Rathi suggested buy call for Bharat Electronics share with target price of Rs 250 apiece.

Macquarie also issued coverage on BEL with an outperform call. The brokerag assigned the target price of Rs 280 to the Navratna PSU.

Bharat Electronics Accomplishes Record Turnover: As per the exchange filing of BEL issued on April 1, "Navratna Defence PSU Bharat Electronics Limited (BEL) has achieved a turnover of around Rs. 19700 Cr (Provisional & Unaudited), during the Financial Year 2023-24, against the previous year's turnover of Rs. 17,333 Cr registering a growth of 13.65%."

In the fiscal year 2023-24, BEL successfully secured orders worth around Rs. 35000 Cr. With this, the total order book of BEL as on April 1st, 2024, stands at around Rs. 76000 Cr, added the press release.

Bharat Electronics Financials: BEL declared its net profit for the quarter ended December 31, 2023 at Rs 859.6 crore, up 40% as against Rs 613 crore announced in the similar quarter of last year. BEL's revenue remained nearly flat at Rs 4162.2 crore as against Rs 4153 crore in the corresponding quarter of last year. EBITDA of BEL announced at Rs 1072.6 crore, up 24% as against Rs 863.4 crore in the same quarter of preceding fiscal. Meanwhile, margin arrived at 26%.

Disclaimer: The stock has been picked from the brokerage report of Prabhudas Lilladher, Macquarie and Anand Rathi. 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 consult with certified experts before making any investment decision.