Bharat Electronics Share Price Hits All-Time High On Winning Orders Worth Rs 585 Crore

Bharat Electronics Ltd.'s share price rose 2.12% on Monday after it bagged additional orders worth Rs 585 crore. The state-owned company will supply fire control and sighting system for missiles, communication equipment, jammers and spares, as part of the orders.

Shares of the company hit an all-time high earlier this month. The stock had been in the spotlight after brokerage firm Antique reiterated its bullish view, citing India’s ambitious target of Rs 16 lakh crore in defence capital outlay by 2030, with a strong focus on domestic procurement.

On June 6, the defence electronics manufacturer received an order for Rs 2,323 crore from Mazagon Dock Shipbuilders Ltd. in Mumbai and Garden Reach Shipbuilders & Engineers Ltd. in Kolkata. The order included supply of base and depot spares for missile systems on Indian naval ships.

Bharat Electronics, a 'Navratna' defence PSU established in 1954, is a leading Indian government-owned company under the Ministry of Defence. It specialises in producing advanced electronic products and systems for the Indian armed forces, covering domains such as radars, missile systems, communication technologies, electronic warfare systems, avionics for aircraft, naval systems, and tank electronics.

Shares of BEL rose as much as 2.12% to Rs 416.90 apiece, hitting a fresh record high. It pared gains to trade 1.56% higher at Rs 414.60 apiece, as of 10:26 a.m. This compares to a 0.91% decline in the NSE Nifty 50.

The stock has risen 36.33% in the last 12 months and 41.82% year-to-date. Total traded volume so far in the day stood at 3.5 times its 30-day average. The relative strength index was at 67.31.

Out of 28 analysts tracking the company, 24 have a 'buy' rating on the stock, one recommends 'hold' and three suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 2.1%.