Bharat Electronics shares jump 7% on winning orders of Rs 3,000 crore
Bharat Electronics (BEL) jumped 7% to Rs 145 in Monday's trade on BSE after the firm received orders worth Rs 3,000 crore.
«Bharat Electronics received an order of Rs 2,118.57 crore from Cochin Shipyard for the supply of various equipments consisting of sensors, weapon equipment, fire control systems and communication equipment for six numbers of next-generation missile vessels (NGMV), class of anti-surface warfare corvettes for Indian Navy,» the company said in an exchange filing.
This project will have the participation of Indian electronics and associated industries, including MSMEs, which are sub-vendors of BEL.
The company has also received additional orders worth Rs 886 crore for the upgrade of AFNET SATCOM N/W, upgrade of Akash Missiles with RF Seeker, Inertial Navigation System and other equipment with accessories and spares etc.
At 10.14 a.m., the scrip was trading 3.1% higher at Rs 140 on BSE. The stock has also surged 40% year-to-date, while it has gained 50% in the past six months.
In Q1 FY23, Bharat Electronics reported a 23% YoY rise in net profit at Rs 530.84 crore.
In the corresponding period last year, profit after tax came in at Rs 431.49 crore. Meanwhile, its revenue from operations stood at Rs 3,446.69 crore in the June quarter of FY24 as compared to Rs 3,063.58 crore in the June quarter of FY23.
As per Trendlyne data, the average target price of the stock is Rs 143, which shows an upside potential of 2% from the current market prices.
The consensus recommendation from 22 analysts for the stock is a 'Buy'.
Technically, the stock's day RSI (14) is at 51.3. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed.
