Bharat Electronics emerges as multibagger stock at 4.3% dividend yield

BEL shares closed on BSE 105.35 each, down 2.32%. Shares had touched intraday highs and lows 108.50 per more 103.85 each respectively. its Market hat is around 77,008.52 crores.

BEL shares were on a positive note from October 24 to 27 and rose over 4% during these three days.

At the current market price, the dividend yield of the shares is 4.27%. In FY22 alone, BEL paid a total Dividend Overall 450% 4.5 per equity share to its shareholders.

Shares are just a few bucks away from their 52-week high 115 per equity share. Shares of BEL have registered a gain of 258.5 per cent in two years. shares were around 29 levels on October 28, 2020.

The company’s stock has been in focus this week due to earnings for the second quarter of FY13.

BEL on Thursday reported a consolidated net profit of 614.83 crores in Q2FY23 as compared to 356.13 crore in Q1FY23. Company posted the PAT of 610.04 crore in Q2FY22. Consolidated revenue from operations stood at 3,907.35 crore in the September 2022 quarter 3,087.28 crore in Q1FY23 and 3,636.60 crore in Q2FY22.

Should you buy Bharat Electronics after Q2 results?

In a report, analysts Amit Anwani and Nilesh Soni at Prabhudas Lilladher said, “Order inflows came in at ~13.6bn (YoY 49.3% lower) in the second quarter of the fiscal year, while the order book stood at ~528bn (3.1x TTM revenue). , which provides. Revenue visibility for the next few years. The order pipeline is strong from Akash Weapon Systems, QRSAM, LRSAM, and Naval Equipment like Surveillance Systems, Radars, Navigation Systems, etc. Company Diversification into Non-Defence Verticals like EVs focusing on metros, electronic warfare, health care, homeland security, etc.”

Further, the note of the two further states, “BEL recently signed an MoU with Triton Electric Vehicles (TEV) for manufacturing of Hydrogen Fuel Cells with technology transfer from TEV. Triton Electric to BEL Also received an order of Rs 80.6 billion from Vahan India (in Q3FY23), for supply of Li-ion battery packs.First management guided for revenue growth of ~15%, EBITDA margin in the range of 20-22% And with an order inflow of ~200 billion for FY23.”

On the outlook, analysts said, “We remain positive on BEL’s long-term growth story with 1) its strong order backlog and order pipeline 2) recent MoU in hydrogen fuel cell, 4) diversification into new business verticals such as medical devices , Hydrogen Fuel Cells, EV Batteries etc., 5) focus on export markets and 6) Government focus on product indigenization etc. We expect BEL to increase revenue from FY22 to FY25E by 16.6%/19.1. Will report PAT CAGR of %. The stock is currently trading at PE of 27.5x/23x/19.8x FY23/24/25E. We maintain ‘Buy’ rating on the stock with a TP of Rs 125 (previously Similarly) evaluate it at 23x FY25E EPS.”

However, analysts Aditya Mongia and Tina Virmani of Kotak Institutional Equities said, “BHE reported a healthy quarter on execution and margins, which helped match the higher YoY basis of EBITDA, well ahead of our expectations. While both ordering and working capital are weak, large battery packs command comfort in both respects. Our revised 100FV boosts revenues from larger order wins and a more positive outlook on margins. With one-year forward earnings on CMP 24X lives up to the expensive valuation.”

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.