Re 0.80/Share Dividend, 10:1 Split: Buy Crorepati Defence PSU, Fresh TP Rs 310: Motilal Oswal

Large cap aerospace & defence sector company, Bharat Electronics Ltd (BEL) shares declined over 4% in last 1-week and soared 140% in last 1-year. The Defence PSU has given attractive returns of 245.96% returns in last 1-year. If investors had bought 50,000 shares of BEL 2-years back on June 8, 2022 @ Rs 81.77 per share, investors would have got a total corpus of Rs 1.03 crore today considering the defence PSU recommended 7 dividends worth Rs 5.5 per share during these 2 years.

Motilal Oswal has buy call on BEL share with fresh target price of Rs 310 per share. Earlier, CLSA too assigned buy call with target price of Rs 294 per share. BEL has declared a final dividend of Rs 0.80/- per equity share of Re 1/- each for FY 2023-24. More details below:

50,000 BEL Shares Bought On June 8, 2022 Gave Corpus Of 1.03 Crore Today: BEL share was priced Rs 81.77/share on June 8, 2022. The PSU recommended 7 dividends during this span worth Rs 5.5 per share. If you had bought 50,000 shares of BEL on June 8, 2024, you would have got a total corpus of Rs 1,03,31,075 crore with an investment of Rs 40,88,500. You would have got a net profit of Rs 62,42,575 lakhs.

BEL recommended Re 0.80/share dividend on May 27, 2024, traded ex-dividend for Re 0.70/share on March 22, 2024, went ex-dividend for Re 0.70/share on Feb 9, 2024, traded ex-dividend for Re 0.60/share on August 17, 2023, went ex-date for Re 0.60/share on March 24, 2023, hit ex-dividend for Re 0.60/share on Feb 10, 2023, and went ex-dividend for Rs 1.50/share on Aug 8, 2024.

CLSA Has Buy Call On BEL Share: CLSA downgraded Bharat Electronics to 'outperform' from 'buy'. However, the analyst upgraded the target price to Rs 294 from Rs 207. According to the analyst, defense stocks emerged the flavor of the season under Modi Govt's 2nd term, soaring greater highs amid centre's push towards the indigenization of defense manufacturing under the Atmanirbhar Bharat theme.

BEL Latest Dividend: Board of Directors of BEL on May 27, 2024 recommended a final dividend of Re 0.80 /- per equity share (80%) of Re 1/- each fully paid-up for the financial year 2023-24 subject to approval by the shareholders in the next Annual General Meeting of the Company.

Bharat Electronics Share Performance: The 52-week high price of BEL shares on BSE were quoting Rs 323.00 per share (as on 03/06/2024) and 52-week low price is Rs 116.45 per share (as on 08/06/2023). Its PE is 51 and ROE is 25.00. BEL has a market cap of Rs 2,06,939.84 crore. Bharat Electronics shares surged 77% in last 6-months, offered return of 140% in last 1-year, soared 245% in last 2-years, and gave return of 454% in last 3-years. In last 5-years, BEL shares surged 683%.

Bharat Electronics Q4: The defence PSU declared 30% year-on-year growth in its consolidated net profit to Rs 1,797 crore for the quarter ended March 2024 as compared to the net profit of Rs 1382 crore declared in the corresponding quarter of last year. Revenue from operations surged 32% to Rs 8,564 crore for Q4 FY 2024 as compared to Rs 6479.12 crore for the similar quarter of last year.

For full FY24, BEL announced its profit after tax (PAT) at Rs 3,984.52 crore, up 33.5% as against the PAT of Rs 2,984.42 crore registered for FY23.

Bharat Electronics Ltd Stock Split History: The defence stock split the face value of its shares once since March 16, 2017. BEL last split the face value of its shares from Rs 10 to Re 1 in 2017.BELshare traded an ex-split as on March 16, 2017.

BEL Bonus History: The PSU's last bonus issue was announced in 2022 in the ratio of 2:1 implying shareholder received 2 bonus shares for every 1 share held. BEL share traded ex-bonus on September 15, 2022. Prior to this, BEL announced bonus shares in 2017 in the proportion of 1:10 and in 2015 in the ratio of 2:1 proportion.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal and CLSA. 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.