Defence Stock in Focus: Tuesday’s trading session saw a focus on the military company’s shares after they secured orders from the government totaling Rs. 847 crores. In only a single year, the investors received a 98 percent return on their shares.
The shares of Bharat Electronics Ltd., which have a market value of Rs. 1,37,351 crores, began trading on Tuesday at a higher price of Rs. 192 as opposed to its previous closing of Rs. 190.90. The shares fell as low as Rs. 187 during the trading session, losing around 2 percent of their value, and ended the day at Rs. 187.90 per share.
The Central Board of Indirect Taxes and Customs (CBIC) placed an order of Rs. 847 crores, the business reported, according to the exchange filing. Tuesday saw the signing of the contract for the administration and deployment of IT infrastructure.
By the project specifications, the defence firm has been tasked with providing, setting up, and maintaining networking and IT infrastructure. In addition, the business will offer centralised administration and monitoring services, field IT assistance, and more.
Defence Stock in Focus
With a contract worth Rs. 665.84 crore plus taxes, Bharat Electronics will provide maintenance support for five years, including the implementation phase. This is one of their largest competitively acquired civilian projects for the current fiscal year (FY24).
In addition to the order above, since its previous declaration on January 17, 2024, the PSU business has received further orders totaling Rs. 182 crores for various supplies and services. In the current fiscal year, BEL has received cumulative orders of Rs. 28494 crore.
Regarding the company’s financial statement, sales went from Rs. 4,009 crores in the September quarter to Rs. 4,162 crores in the December quarter, a little rise of 4%. Furthermore, during the same period, the net profit climbed by 9%, from Rs. 790 crores to Rs. 860 crores.
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The annual report states that BEL intends to continue investing in R&D to provide cutting-edge products or solutions for meeting the constantly changing needs of customers. BEL will also facilitate the scaling of R&D for innovative Products or Services across the organisation to align with the objectives of growth, diversification, and transformation. In addition, the corporation hopes to grow its “non-defence” revenue share during the next two to three years.
Founded in 1954, Bharat Electronics Ltd. has its headquarters located in Bengaluru. The company is in the business of creating, producing, and delivering electronic systems and equipment to the Indian military and civilian sectors. Its product line includes tanks, avionics, electro-optics, land-based radars, naval systems, defensive communication devices, and more.
