Bharat Electronics (BEL) share price rose 2 per cent in early trade on March 7 after the company has secured an additional order of Rs 577 crore effective February 20, 2025.
At 09:24 am, Bharat Electronics was trading at Rs 278.85, up Rs 6.05 or 2.22 per cent on the BSE.
The major orders include airborne electronic warfare products, advanced composite communication system for submarine, doppler weather radar, train communication system, radar upgradation, spare parts, services, etc.
With these, the total accumulated orders received by the company during the current financial year rose to Rs 13,724 crore.
Foreign research house JP Morgan has an highweight rating on the stock with a target price of Rs 343 per share.
The research house believes that a 20 per cent correction from the peak due to structural increase in defence capex in India presents a good entry opportunity, as the company is one of the most diversified and consistent.
The company’s revenue/EBITDA/PAT CAGR of 15 per cent/17 per cent/16 per cent is compelling with a 25 per cent+ average ROE during FY24-FY27. The firm feels that there is a high probability of the company announcing orders worth Rs 120 billion by March 31. The company board declared an interim dividend of Rs 1.50 per share on March 5 and fixed March 11, 2025 as the record date for the purpose of payment of interim dividend on equity shares for the financial year 2024-25.
In the month of February, the Ministry of Defence signed a Rs 1,220 crore contract with the company for the procurement of 149 software defined radios for the Indian Coast Guard. Further, various orders worth Rs 962 crore were received, including a Rs 610 crore contract for supply of Electro-Optic Fire Control System (EOFCS) to the Indian Navy.
The stock hit a 52-week high of Rs 340.35 and a 52-week low of Rs 179.20 on July 10, 2024 and March 15, 2024, respectively.
Currently, the stock is trading 18.07 per cent down from its 52-week high and 55.61 per cent up from its 52-week low.
The market capitalisation stands at Rs 203,833.18 crore.
