Tuesday brought a welcome change in mood for the Indian markets after a traumatic Monday. In today’s trading session, the state-owned Navratna defence major Bharat Electronics (BEL) saw its shares surge over 5% in the early trading hours after it bagged a major contract from the Indian Air Force (IAF).
BEL share surge over 5% on fresh defence order
In early trade, BEL’s stock jumped to an intraday high of Rs 287.85 on the BSE, marking a gain of more than 5%. The spike in share price came on the back of news that BEL has secured a Rs 2,210 crore order to supply an advanced Electronic Warfare (EW) Suite for the Mi-17 V5 helicopters of the IAF.
What is in the deal?
The EW Suite – developed by the Defence Research and Development Organisation (DRDO) unit CASDIC and manufactured by BEL – includes a Radar Warning Receiver (RWR), Missile Approach Warning System (MAWS), and Counter Measure Dispensing System (CMDS). These systems are expected to enhance the helicopter’s combat survivability by defending against enemy threats in the sky.
According to BEL’s statement, this contract marks a step forward in India’s goal of indigenising high-tech defence systems. The company noted that the new suite will provide effective electronic countermeasures.
In the regulatory filing, the company added, “With this, BEL has now accumulated orders totalling Rs.2,803 Crores in the current financial year”
BEL stock performance so far
While BEL made headlines today with a 5% surge today, its broader stock performance tells a more nuanced story. Over the past month, BEL’s share price have edged up by around 3.5%. In the last six months, however, the gains have been relatively flat, rising just 0.5%.
Zooming out to a one-year perspective, the stock paints a far more optimistic picture, rallying nearly 26%. Yet, on a year-to-date (YTD) basis, the stock has slipped 4%.
At present, BEL commands a market capitalisation of Rs 2.09 lakh crore. The stock’s 52-week high stands at Rs 340.50, while the low is Rs 221. With shares currently trading around Rs 282, BEL is about 17% off its peak.