Shares of Bharat Electronics (BEL) zoomed 3.6% in early trade on Thursday to hit a new all-time high of ₹161.80 apiece after company received new orders worth ₹3,915 crore. In an exchange filing on Wednesday, the company said that it received orders worth ₹3,915 crore, which includes a ₹580 crore order from the Indian Army for AMC of Radars, and orders worth ₹3,335 crore since its last disclosure on September 15, 2023.
With the latest order wins, Bharat Electronics Limited has accumulated orders totaling ₹18,298 crore in the ongoing financial year 2023-24.
Earlier in September, the company received an order of ₹2,118.57 crore from Cochin Shipyard Limited for the supply of various equipment consisting of sensors, weapon equipment, fire control systems, and communication equipment for six numbers of next generation missile vessels (NGMV), a class of anti-surface warfare corvettes for the Indian Navy.
Bharat Electronics is a Navratna PSU under the Ministry of Defence, Government of India. The company manufactures state-of-the-art electronic products and systems for the Army, Navy, and Air Force.
The company would play a significant role in successfully implementing the government’s Make in India and Atma Nirbhar Bharat initiatives, as it is a key defence and aerospace player. Further, global defence companies are tying up with indigenous players, as there is a tremendous export potential for engineering services and component sourcing from India, which bodes well for BEL, according to analysts.
Also Read: Why we are bullish on India’s junior defence stocks
The company shares this year so far have delivered stellar return, owing to strong financial performance and robust order wins. After hitting a one-year low of ₹87 apiece in March, the shares bounced back strongly to the current level of ₹160.20, reflecting an increase of 84%. On September 01, Bharat Electronics crossed the ₹one lakh crore market capitalization.
Also Read: India approves procurement of 97 Tejas jets, over 150 Prachand choppers
For the September-ending quarter, the company reported a net profit of ₹790 crore, an improvement of 26.6% over the Q2 FY23 net profit of ₹624 crore. The revenue from operations during Q2FY24 came in at ₹4,009 crore, a 1.18% jump compared to ₹3,962 crore in Q2FY23.
At 12:00 PM, the stock was trading with a gain of 2.27% at ₹159.70 apiece.
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.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
Download The Mint News App to get Daily Market Updates.
Published: 07 Dec 2023, 12:04 PM IST