BEL Share Price Hits New 52 week High should you buy ?
BEL (Bharat Electronics Limited) is a major player in the defence sector. It has recently made headlines by reaching a new all-time high on the NSE:BEL. This surge comes because of its Q4 results. It also comes because of its final dividend. BEL is a leader in the defense industry. It continues to catch investors’ attention. This is due to its strong order book and promising growth.
BEL Share price Performance
BEL’s share price has demonstrated remarkable performance, reaching Rs 257.50 per share during a special trading session on Saturday. At the time of writing, the stock is trading at Rs 259.200 on the NSE:BEL, boasting a market capitalization of Rs 1,88,299.90 crore. This peak comes close to its all-time high of Rs 259.20, achieved earlier in the day. Year-to-date, BEL shares price have appreciated by 39%, and over the past year, the stock has skyrocketed by 139%, solidifying its status as a multi-bagger.
The long-term growth of BEL share price is even more astounding. Since January 1, 1999, when the stock traded at a mere Rs 0.22, it has surged by an incredible 117,081.82%. An investment of Rs 10,000 then would be worth about Rs 1.2 crore today. This shows BEL’s potential to generate wealth.
Upcoming Earnings and Dividend Announcement
BEL’s board meeting is on May 20, 2024. They will review and approve the audited Q4 financial results. They will also review and approve the audited results for the year ending March 31, 2024. Market expectations are high, with anticipated growth in revenue and EBITDA. But margins may face pressure due to the high base effect.
In FY24, BEL stock secured significant orders worth around Rs 35,000 crore. The orders include Electronic Fuzes and Warfare Systems. They also include Communication Systems for warships and Fire Control Systems, among others. The order book is impressive. It has boosted BEL share price. The company achieved a turnover of Rs 19,700 crore. This is up 13.65% from the previous year.
Dividend History and Future Potential
BEL share price has a strong track record of delivering dividends to its shareholders. In 2024, the company has already declared two interim dividends, each at 70%, totaling Rs 1.4 per share. Since August 2001, BEL has declared 50 dividends. This shows its commitment to giving value to shareholders.
Stock Split and Bonus Issues
BEL has had one stock split. It happened in 2017. The face value of each share was split from Rs 10 to Rs 1. Additionally, BEL has issued five bonuses to its shareholders since 2015. This has further increased shareholder value. These bonuses include a 2:1 ratio in 2015 and follows bonuses in 2017 and 2022.
Future Growth and Analyst Recommendations
Analysts are optimistic about BEL’s future prospects. ICICI Securities expects revenue to grow by 13.7% YoY for FY24. This is slightly above their first guess. The company’s order inflows have stayed strong. They have a backlog of about Rs 76,000 crore. This backlog ensures good revenue visibility for FY25 and FY26.
Defense is a big driver of growth for BEL share price. It has strong demand for warfare, radars, and communication systems. The management expects order inflows of Rs 50,000 crore over the next two years. They may be boosted by non-defense and export orders.
Target Prices and Analyst Ratingsd
26 analysts have given 1-year price forecasts for BEL. The high forecast is Rs 300 and the low forecast is Rs 130. Nomura has started covering BEL. They gave it a “BUY” rating and set a target price of Rs 300. They cited better visibility on order inflows and possible margin growth. Macquarie has also rated BEL as “Outperform,” with a target price of Rs 280.
Conclusion
Bharat Electronics Limited is a standout in the defense sector. It has impressive stock performance, a robust order book, and consistent dividend payouts. The company will soon announce its Q4 results and final dividend. Investors are optimistic about its future growth and potential. Analysts strongly endorse BEL share price. It has a solid financial foundation. BEL is poised to keep rising. It’s a compelling investment for both short-term gains and long-term wealth creation.
