On BSE, BEL shares closed at ₹105.35 apiece down by 2.32%. The shares had touched an intraday high and low of ₹108.50 apiece and ₹103.85 apiece respectively. Its market cap is around ₹77,008.52 crore.
BEL shares were on a positive note from October 24 to 27 and surged by more than 4% during these three days.
At the current market price, the shares have a dividend yield of 4.27%. In FY22 alone, BEL paid a total dividend of 450% aggregating to ₹4.5 per equity share to its shareholders.
The shares are just a couple of rupees away from their 52-week high of ₹115 per equity share. BEL shares have recorded an upside of a whopping 258.5% in two years. The shares were around ₹29 levels on October 28, 2020.
The company's stock has been in focus this week due to its Q2FY23 earnings.
On Thursday, BEL recorded a consolidated net profit of ₹614.83 crore in Q2FY23 compared to ₹356.13 crore in Q1FY23. The company posted a PAT of ₹610.04 crore in Q2FY22. Consolidated revenue from operations stood at ₹3,907.35 crore in September 2022 quarter as against ₹3,087.28 crore in Q1FY23 and ₹3,636.60 crore in Q2FY22.
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In a report, Amit Anwani and Nilesh Soni analysts at Prabhudas Lilladher said, "Order inflows came in at ~Rs13.6 billion (down 49.3% YoY) in Q2FY23, while order book stood at ~Rs528bn (3.1x TTM revenue), providing revenue visibility for next couple of years. Order pipeline stands strong from Akash weapon system, QRSAM, LRSAM, and Naval equipment’s like surveillance system, radars, navigation systems, etc. Company has been focusing on diversification in non-defense verticals such as EV, metros, electronic warfare, healthcare, homeland security, etc."
Moreover, the duo's note further added, "BEL recently signed a MoU with Triton Electric Vehicle (TEV) for manufacturing Hydrogen Fuel cells, with technology transfer from TEV. BEL also bagged an order worth Rs80.6 billion from Triton Electric Vehicle India (in Q3FY23), for supplying Li-Ion Battery Packs. Earlier management guided for revenue growth of ~15%, with an EBITDA margin in range of 20-22% and order inflows of ~Rs200 billion for FY23."
On the outlook, the analysts note said, "We remain positive on long-term growth story of BEL given 1) its strong order backlog & order pipeline 2) recent MoU in hydrogen fuel cell, 4) diversification in newer business verticals like, medical equipment’s, hydrogen fuel cell, EV batteries etc., 5) focus on export markets and 6) government focus on product indigenization etc. We expect BEL to report revenue and PAT CAGR of 16.6%/19.1% from FY22 to FY25E. The stock is currently trading at PE of 27.5x/23x/19.8x FY23/24/25E. We maintain ‘BUY’ rating on stock with TP of Rs125 (same as earlier) valuing it at 23x FY25E EPS."
However, Aditya Mongia and Teena Virmani analysts at Kotak Institutional Equities said, "BHE reported a healthy quarter on execution and margin, helping match a high yoy base of EBITDA, much ahead of our expectations. While both ordering and working capital are weakening, large battery packs order comforts on both counts. Our revised Rs100 FV bakes in the boost to revenues from the large order win and a more positive stance on margin. REDUCE stays on expensive 24X one-year forward earnings valuations at CMP."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
