Bharat Electronics is on a winning streak. The stock is up 2% amidst a flat session on Friday on the back of key order wins. The defence secured fresh orders worth Rs 577 crore, pushing its total order book for FY25 beyond Rs 13,000 crore. The Bharat Electronics share price has surged over 12% in the past five sessions.
Here are the key reasons powering the surge
There are many reasons driving the rally in BEL share price
Strong order pipeline
The Rs 577 crore order win has further strengthened the company’s order pipeline and revenue outlook going into Q4 earnings season. “Major orders include airborne electronic warfare products, advanced composite communication system for submarine, doppler weather radar, train communication system, radar upgradation, spares, services etc. With these, the total accumulated orders received by BEL during the current financial year stand at Rs13,724 Crore,” the company said in an exchange filing on March 6.
BEL declares interim dividend
Along with securing new orders, BEL recently announced an interim dividend of Rs 1.50 per share for FY25. The company has set March 11, 2025, as the record date for this payout.
Historically, BEL has consistently rewarded its shareholders with dividends. In the past year, the company declared a final dividend of Rs 0.80 per share on August 14, 2024. In addition, it announced interim dividends of Rs 0.70 per share on both March 22 and February 9, 2024. Looking further back, BEL issued a final dividend of Rs 0.60 per share on August 13, 2023.
Bharat Electronics Q3FY25 performance
In Q3FY25, BEL reported a revenue of Rs 5,643 crore, marking a 37% increase from Rs 4,120 crore in the same quarter last year. The company’s operating profit (EBITDA) stood at Rs 1,653 crore, a 57.5% rise, while its EBITDA margin improved by 330 basis points to 28.7%. Profit before tax (PBT) also saw an increase of 49.64%, reaching Rs 1,754 crore compared to Rs 1,172 crore in the corresponding period last year.
Stock performance: How has BEL fared?
Bharat Electronics has a market capitalisation of Rs 2.03 lakh crore. It has hit a 52-week high of Rs 340.50, while its 52-week low is Rs 179.10 per share. The stock has delivered a strong yearly gain of nearly 30%. Most brokerages have a Buy rating on the stock with an average target price ranging between Rs 324 – 376 per share. The company’s strong order pipeline along with debt free status and consistent dividend payout schedule have been some triggers for the positive recommendation from brokerages.