1:10 Split, 2:1 Bonus, 80% Dividend, 137,877% Gains: BUY Zero-Debt Defence PSU Stock BEL On August 19, Target?

 Bharat Electronics (BEL), a debt-free defence PSU giant with Navratna status, is recommended to buy on August 19, on the occasion of Raksha Bandhan. In its intraday call, Prabhudas Lilladher sees over 4% potential surge in BEL during the day. BEL is a super defence stock with all-time gains of 137,877.27% on NSE


On NSE, after market hours of August 16, BEL shares stood at Rs 303.55 apiece, with a market cap of Rs 2,21,888.34 crore. In the closing bell, the stock gained by 3.4%.

BEL has currently floating near Rs 300 levels for the past few days, correcting significantly from its 52-week high of Rs 340.50 apiece that was recorded on July 10.

In a year, BEL stock gained by 135.9% on the NSE, becoming a multi-bagger. BEL's 5-year performance is also robust by 848%. But BEL's all-time gains are humongous by 137,877.27% as of August 16, 2024, compared to 25 years ago when BEL shares were merely at Rs 0.22 on January 1, 1999.

BEL Recommendation On August 19:

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher recommends BUY on BEL stock for a target price of Rs 317 with a stop loss of Rs 296.

Last week, Sumeet Bagadia, Executive Director at Choice Broking recommended BUY for target prices of Rs 320 and Rs 350, while stop loss is set at Rs 280.

Moreover, as per Trendlyne data, the consensus recommendation from 25 analysts for Bharat Electronics Ltd. is BUY. EPS is expected to grow by 16.5% in FY25. The 1-year average target price as per the consensus is Rs 330 on BEL, hinting at over 9% potential upside.

However, in the long term, BEL shares are seen to rise by nearly 30% as the highest target price ranges from Rs 390 to Rs 400.

BEL Corporate Actions:

BEL shares turned ex-dividend on August 14, for its final dividend of 80% worth Rs 0.80 per Equity share (having a face value of Rs.1/- each). Eligible investors will be those who are holding BEL shares in their demat accounts by the end of August 14.

Overall, BEL is distributing a 220% dividend amounting to Rs 2.2 per share for FY24.

Apart from being a top dividend-paying defence stock, BEL also has carried only one stock split so far. It was in 2017, when 1 BEL share split into ten smaller shares effective from March 16. The face value split from Rs 10 to Rs 1. Also, BEL has paid three bonuses to its shareholders since 2015, in total it distributed 5 bonuses. The first bonus reward of a 2:1 ratio in September 2015, followed by 1:10 and 2:1 bonus issues in September 2017 and 2022 respectively.

In the June 2024 quarter, BEL earned a standalone net profit of Rs 776.14 crore, rising by a whopping 46% from a net profit of Rs 530.84 crore in the same period a year ago. While the defence PSU giant's revenue increased by 19.6% to Rs 4,198.77 crore in Q1FY25, compared to revenue of Rs 3,510.84 crore recorded in the same period last year.

BEL has achieved a Turnover of Rs. 4,105.14 crore, registering a growth of 19.10% during the 1st Quarter of FY 2024-25 over the Turnover of Rs. 3,446.69 crore recorded in the corresponding period of the previous year.

As of July 1, 2024, BEL's order book position is at Rs 76,705 crore.

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