Shares of this defence stock jumped up to 5 percent in Tuesday’s trading session after bagging an order worth Rs 678 crores from the government. The company’s stock has gained more than 70 percent for its stakeholders on a YTD basis.
With a market capitalization of Rs. 1,33,842 crores, the shares of Bharat Electronics Ltd started Tuesday’s trading session on a higher note at Rs. 178 compared to its previous high of Rs. 174.80. The shares hit a high of Rs. 184.50, gaining around 5 percent, which is also the company’s fresh 52-week high.
Such a positive movement in the share price was observed after the company in an exchange filing announced receiving multiple orders worth Rs. 678 crores. The company signed a contract for a value of Rs. 445 crores with the UP Government for the next-generation UP Dial 112 project.
For this, the company will be providing comprehensive and state-of-the-art hardware, AI-based software tools and cybersecurity solutions, which are spread across the entire state of Uttar Pradesh. BEL will be utilizing the ecosystem of domestic suppliers, including MSMEs, for the execution of this project.
With the above, in the current financial year, Bharat Electronics Ltd, to date, has a cumulative order book worth Rs Rs. 26,613 crores.
Furthermore, the company also received an additional order worth Rs 233 crores since the last disclosure on 22nd Dec 2023 and these orders pertain to Communication Display Units, Thermal Imaging cameras and other miscellaneous spares and services.
During the recent financial quarters, the company’s prime indicators of business such as operating revenues and net profits exhibited an increase with the former taking a shift from Rs 3,532.94 crores during the June quarter to Rs 4,009.06 crores during the September quarter, and, the latter, during the same period, shifting from Rs 528.6 crores to Rs 780.73 crores.
According to the annual report, BEL will enable the scaling of R&D for innovative Products or Services across the organisation to align with the objectives of growth, diversification and transformation and they plan to continue investing in R&D to offer advanced products or solutions for meeting the continuously evolving requirements of customers. Moreover, the company is targeting an increase in the share of ‘non-defence’ revenue in the next two to three years.
Headquartered in Bengaluru, Bharat Electronics Ltd was incorporated in 1954. The company is engaged in the business of designing, manufacturing and supplying electronic equipment and systems for the defence and civilian markets in India. Its product portfolio includes defence communication products, naval systems, land-based radars, avionics, electro-optics, tanks, etc.
Written By Vaibhav Patil
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Defence stock jumps 4.6% after company bags orders worth ₹ 678 Cr from UP Govt - Trade Brains
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