BEL shares gain on bagging Rs 2,673-crore orders

BEL shares gained 1 percent intraday on December 22 after the company received a Rs 2,673 crore of orders from Goa Shipyard and Garden Reach Shipbuilders & Engineers.

The order value from Goa Shipyard is Rs 1,701 crore, while that of Garden Reach Shipbuilders & Engineers is Rs 972 crore.

As of 12.54pm, the BEL stock was trading at Rs 173.1 apiece, higher by 1.44 percent, on the NSE.

The orders placed are for the supply of 14 types of sensors for use on Next Generation Offshore Patrol Vessels (NGOPV).

As a result of this order, electronics and other associated industries, including MSMEs, will participate, which are sub-vendors of BEL. The equipment manufactured by BEL is part of the ‘Atmanirbhar Bharat’ programme.

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The company has also received additional orders worth Rs 86.15 crore since the last disclosure on December 15, which pertain to miscellaneous spares and services. With the following, BEL has bagged cumulative orders worth Rs 25,935.15 crore so far in this financial year.

Earlier in December, the brokerage firm UBS raised the target price on the stock to Rs 205. In line with their preference for state-owned defence enterprises, they remain bullish on Bharat Electronics (BEL) growth or returns, analysts at UBS said.

Improving earnings growth visibility and an expanding order pipeline justified the premium valuation. The analysts raised the target price to Rs 205, recognising potential upgrades to new orders over the next three to five years, and exports.

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