Bharat,
In the past few days, a number of contracts with Bharat Electronics Limited (BEL) have been signed by the Ministry of Defense (MoD). sixteen,300 crores Investors’ concerns about BEL’s sluggish order book, which was at a multi-quarter low, were alleviated as a result. 50,116 crore in the month of December (Q3 FY23). In Friday morning trade on the National Stock Exchange, BEL shares gained 6%.
Other than this, there were worries about whether the organization would miss its FY23 request inflow target 20,000 crores overwhelmingly. This quiet follows behind the request inflow 3,700 crore in the nine months finished December.
In a March 31 report, analysts at ICICI Securities stated that incoming order inflows from the Defense Ministry are anticipated to play a significant role in maintaining BEL’s annual revenue growth rate of 15% over the next few years.
The facility is also provided by BEL’s pipeline. Large missile orders like QRSAM, LRSAM (or its alternatives), and MRSAM are anticipated to rise in FY24e, according to analysts at Jefferies India in a report on March 30. MRSAM stands for Medium-Range Surface-to-Air Missile, while QRSAM stands for Quick Reaction Surface-to-Air Missile. LRSAM stands for Long-Range Surface-to-Air Missile.
BEL will benefit from the country’s push toward indigenization. Over 300 new items have been added to the Defense Import Sanctions List in the last 12 to 24 months. More than 190 of the 1,100 items on the list are manufactured by BEL,” Jefferies said.
Certainly, execution is crucial here, and investors would do well to monitor whether BEL meets margin guidance for FY23. Investor sentiment will be impacted by any disappointment on that front. Likewise, there is a need to screen the extension of BEL in non-guard areas. BEL stock is down 15% from its 52-week high now that the share price has risen. 114.65 per share was found in September.
