Bharat Electronics shares dividend: Shares of state-run company Bharat Electronics shall trade ex-dividend on Tuesday. The multibagger PSU bluechip counter had announced an interim dividend for their eligible shareholders, earlier this month, after announcing its Q3FY25 results in January 2025.
In its meeting held on MaThe company board of Bharat Electronics considered and declared an interim dividend of Rs 1.50 per equity share (150 per cent) having face value of Re 1 each, said the company in its exchange filing with the bourses on March 5, 2025. The interim dividend will be paid within 30 days from the date of declaration.
Shares of Bharat Electronics Ltd settled at Rs 272.25 on Monday, falling more than 1.7 per cent for the day. The total market capitalization of the company stood below Rs 2 lakh crore mark. The stock is up more than 50 per cent from its 52-week low at Rs 179.20 hit in March 2024, while it has dropped more than 20 per cent from its 52-week high at Rs 340.35 hit in July 2024.
Shares of Bharat Electronics have zoomed nearly 1,100 per cent in the last five years, while the stock has surged nearly 200 per cent in the last two years. BEL shares are up 30 per cent in the last one year, while they have remained slightly negative in 2025 so far.
Bharat Electronics reported a 47.3 per cent YoY growth in its profit after tax (PAT) for the third quarter ended December 2024 to Rs 1,316.06 crore. The state-owned Nifty50 constituent's consolidated revenue from operations for the quarter came at Rs 5,770.69 crore, up 38.6 per cent YoY.
BEL reported an Ebitda of Rs 1,653 crore, marking a 57.5 per cent YoY improvement for the quarter. Its Ebitda margin expanded by 330 basis points YoY to 28.7 per cent in Q3FY25. The company's order book position as of January 1, 2025, stood at Rs 71,100 crore, said the company.
Bharat Electronics has been one of the most consistent performers in the defence sector with a solid track record. Order inflow during the same period reported a robust 24% CAGR, leading to an all-time high order backlog of Rs 76,000 crore at the end of FY24. It is all set to deliver strong double-digit earnings growth over FY24-27, said Antique Stock Broking.
"We have built in 15 per cent/ 19 per cent/ 21 per cent revenue/ EBITDA/ PAT CAGR over FY24-27E, similar to what the company has been consistently delivering over the last ten years. Recent stock price correction along with the broader sector and market correction offers a good entry point to own a quality defence stock with market leadership position in the defence electronics segment," it added with a 'buy' rating and a target price of Rs 376.
Overseas brokerage Jefferies increased its target price on the defence stock to Rs 325. The PSU needs another Rs 11,300 crore order inflow to meet its FY25 guidance and that global news on rising defence spend may be a near-term trigger for BEL, said Jefferies in its recent report on the stock.
The cumulative order intake till late is Rs 10,000 crore, which was lower than initial guidance. However, management has reiterated its FY25 order inflow guidance at Rs 25,000 crore, said Geojit Financial Services. "Considering 9MFY25 Ebitda margins at 27.4 per cent, we anticipate a margin profile in the range of 25-26 per cent, while profitability is anticipated to grow by 17.1 " CAGR over FY25E-27," it said.
We reiterate our positive outlook on BEL given the government's thrust in domestic manufacturing, increasing electronics share in defence, its market leadership position, a strong order backlog, and a healthy margin profile. Given the upgrade in estimates and sharp correction in stock prices, we value BEL at P/E of 35 times and maintain 'buy' rating with a target price of Rs 324," Geojit said.
Among other brokerage firms, Phillip Capital and Motilal Oswal have maintained their 'buy' rating on Bharat Electronics with target prices of Rs 390 and Rs 360, respectively. Nirmal Bang Institutional Equities also upgraded Bharat Electronics post Q3 results to 'buy' with a target price of Rs 326.