Bharat Electronics Limited: Bharat Electronics Limited (BEL) is a government-owned aerospace and defense electronics company in India. It manufactures advanced electronic products primarily for ground and aerospace applications. BEL is one of the sixteen PSUs under the Ministry of Defense of India. It has been given Navratna status by the Government of India. With good financial parameters, should you consider investing in this stock or not? Read the article.
Upward trend since 2020
On monthly time frame Bharat Electronics Limited (BEL) stock price is showing an upward trend since 2020
Bharat Electronics Limited (BEL) is a defense and aerospace company, which has given returns of over 600% to its investors in the last three years. The stock price declined slightly in 2020, but has been on an upward trend since then. The share price reached Rs 140 in September 2023. This stock is giving huge returns to its investors.
Strengths Basic Features
BEL is a debt-free company with a healthy dividend payout ratio of 45.4%. The company is expanding its product and service offering to include new sectors such as ORA weapon systems, space electronics, lithium-ion batteries, renewable energy, network and cyber security, and railways and metro.
increase in defense spending
Let us tell you that the Government of India has set a target of achieving 70 percent indigenous defense procurement by the year 2027. This initiative is set to have a significant positive impact on Bharat Electronics Limited (BEL), as it reflects the government’s unwavering commitment to strengthening the country’s defense capabilities.
The Government of India recognizes the importance of BEL by granting it Navratna status, which provides the company with greater independence and ability to raise funds from the market. This position highlights the government’s confidence in BEL’s capabilities and its important role in India’s defense and technology sectors.
Bharat Electronics Limited’s contribution to national security
Remember that BEL’s work is not only commercially important, it is also important for the national security of India. Its technological advancements and products play an important role in strengthening the defense systems of the country. This dual-purpose mission – commercial success and national security – further strengthens BEL’s position in the government’s agenda.
Financial strength of BEL
BEL has a strong track record of profitability and dividend payments, making it an attractive investment for investors looking for a combination of growth and income. The company is almost debt-free and has a dividend payout ratio of 45.4 percent.
Here is some additional information about BEL’s financial performance:
- In fiscal year 2022-23, BEL recorded revenue of Rs. Rs 8825 crore and net profit of Rs 2986 crore.
- The company’s operating margin has consistently been above 20% in recent years.
- BEL has a strong balance sheet with a debt-to-equity ratio of 0.1.
- The company has a long history of paying dividends to its shareholders. BEL paid a dividend of Rs 2.70 per share in the financial year 2022-23.
At the same time, BEL’s financial performance is a testament to the strength of its business model and its competitive advantages. The company is well positioned to continue its growth trajectory in the coming years, driven by the Government of India’s focus on indigenous defense procurement and BEL’s own investments in research and development.
Additionally, BEL’s impressive growth and these underlying factors make it an excellent option for investors looking for opportunities in the Indian economy, defense sector and government support. However, due diligence and personal financial goals should guide investment decisions.
Disclaimer: This information is provided for informational purposes only. It is important to note that investing in the market or any business idea involves market risks. Before investing money as an investor/owner/partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial loss.
For all the news of the country and the world, our YouTube Channel ‘DNP INDIA’ Subscribe now. you us FACEBOOK, INSTAGRAM And TWITTER You can also follow on.
– Commercial –
: Language Inputs
This post is sourced from newspapers, magazines and third-party websites. For more information please check NewsDay Express Disclaimer.