Shares of Bharat Electronics, a Navratna PSU under the Ministry of Defence, Government of India, jumped 5.5% to hit a new all-time high of ₹184.50 apiece in today’s trade after the company received orders worth ₹678 crore.
In today’s exchange filing, the company said it had signed a contract for a value of ₹445 crore with the UP government for the next-generation UP Dial 112 project. The company will provide comprehensive and state-of-the-art hardware, AI-based software tools, and cybersecurity solutions for the Dial 112 project, which is spread across the entire state of Uttar Pradesh.
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“BEL is happy to be associated with the UP Government for this project, which is one of Asia’s biggest emergency response system. BEL will be utilising the ecosystem of domestic suppliers, including MSMEs, for the execution of this project,” the company’s exchange filing said.
In addition, the company said it has also received additional orders worth ₹233 crore, which pertain to communication display units, thermal imaging cameras, and other miscellaneous spares and services.
Strong order wins
Last week, the company received orders worth ₹2,673 crore from Goa Shipyard Limited and Garden Reach Shipbuilders & Engineers for the supply of 14 types of sensors for use on Next Generation Offshore Patrol Vessels (NGOPV).
On December 15, the Ministry of Defence entered into a significant agreement with BEL, Pune, for the acquisition of electronic fuzes for the Indian Army over a 10-year period, with a total investment of ₹5,336.25 crore.
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With the latest order wins, Bharat Electronics Limited has accumulated orders totaling ₹26,613 crore in the ongoing financial year 2023–24.
Meanwhile, global brokerage firm UBS has lifted its target price on BEL to ₹205 apiece, citing the company’s improving earnings growth visibility and an expanding order pipeline.
Best monthly performance since 2014
The company’s strong order wins have propelled the stock to gain 25.50% in the current month so far, registering its best monthly performance since December 2014. On a year-to-date basis, the stock has delivered a massive return of 83%. Notably, on September 1, the company achieved a milestone by crossing the ₹one lakh crore mark in market capitalisation.
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Other defence stocks like Mazagon Dock Shipbuilders, Bharat Dynamics, Hindustan Aeronautics, Cochin Shipyard, and Garden Reach Shipbuilders & Engineers are also currently trading in positive territory today, registering gains ranging between 5 and 8% as of 01:30 PM.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 26 Dec 2023, 02:19 PM IST