Bharat Electronics Share Price Outlook: 1% Dividend Yield and 70% Payout, Up 109% from 52-Week Low – Is It Still a Buy?

Bharat Electronics

The recent update on Bharat Electronics Limited’s share

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  • Bharat Electronics Limited’s shares closed at Rs 184.50, a 0.60% increase from the previous week.
  • The company has a market capitalization of Rs 1,34,865.42 crore.
  • The company shares have shown impressive growth, rising by 109% from their 52-week low of Rs 88.30.
  • BEL has declared an interim dividend of Rs 0.70 per equity share (70% payout) for the financial year 2023–24.
  • The dividend is to be paid within 30 days from the date of declaration.
  • In 2023, BEL paid dividends totaling 180% of Rs 1.8 per share.
  • The upcoming 70% payout reinforces the company’s dividend distribution strategy.
  • JM Financial is positive on BEL due to its robust order inflows, margin improvement, healthy order pipeline, and improving return ratios.
  • Prabhudas Lilladher is also positive on BEL for its long-term growth story, strong order backlog, diversification into non-defense verticals, focus on export markets, and government’s push for defense indigenization.
  • Elara Capital is also positive on BEL and predicts a 22% CAGR in Bharat Electronics Limited’s earnings for FY24E, FY25E, and FY26E, with a 25% return on equity and return on capital employed, indicating strong confidence in the company’s potential for sustained growth.

About Bharat Electronics Limited (BEL)

Bharat Electronics Share Price Outlook: 1% Dividend Yield and 70% Payout, Up 109% from 52-Week Low - Is It Still a Buy?
  • Bharat Electronics Limited (BEL) is a prominent player in the aerospace and defense industries, known for its significant contributions to India’s defense capabilities.
  • BEL started in Bangalore, Karnataka, in 1956, manufacturing communication equipment.
  • The company expanded to include receiving valves, semiconductors, and radio transmitters, collaborated with the Soviet Union, and diversified into radar manufacturing for the army in 1966.
  • In 1980, the company established multiple manufacturing units across India, strategically expanding to meet the evolving needs of the armed forces and to capture overseas markets with an office in New York.
  • The company offers electronic voting machines, radars, missiles, sonars, and communication systems and is the lead integrator for the Akash missile defense system.
  • The company located its units across India and had foreign offices in New York, Singapore, Hanoi, Yangon, Muscat, and Colombo.

Management of Bharat Electronics Limited (BEL)

NameDesignation
Dinesh Kumar BatraDirector – Finance & CFO
Vinay Kumar KatyalDirector
Bhanu Prakash SrivastavaDirector
P V ParthasarathiIndependent Director
Mansukhbhai S KhachariyaIndependent Director
Prafulla Kumar ChoudhuryIndependent Director
Gokulan BangakandyIndependent Director
Anandi RamalingamChairman & Managing Director
M V RajasekharDirector – R & D
Anurag BajpaiPart-Time Govt. Director
Binoy Kumar DasPart-Time Govt. Director
N SanthoshkumarIndependent Director
Shivnath YadavIndependent Director
Shyama SinghIndependent Director

Registered Address Bharat Electronics Limited (BEL)

Outer Ring Road,
Nagavara,,
Bengaluru
Karnataka
560045

Tel: 080-25039266
Fax: 080-25039233
Email: secretary@bel.co.in
Website: https://bel-india.in

Industry Type

SectorCapital Goods
Sub SectorAerospace & Defense
ClassificationLargecap
Industry NameElectronice – Components
BSE Scrip Code500049
NSE Scrip CodeBEL
ISININE263A01024

Pros of Bharat Electronics Limited (BEL)

Company is almost debt free.
Company has been maintaining a healthy dividend payout of 45.4%

Cons of Bharat Electronics Limited (BEL)

Stock is trading at 9.11 times its book value
The company has delivered a poor sales growth of 11.3% over past five years.

Historical Performance

YearsLowHigh
1 Year88.30195.50
3 Years38.62195.50
5 Years18.67195.50

Investment Returns

PeriodReturns
1 year98.28%
2 Years162.78%
3 Years314.83%
4 Years563.31%
5 Years568.84%

Dividend History of Bharat Electronics Limited (BEL)

Announcement DateEx-DateDividend TypeDividend (%)Dividend (Rs)
29-01-202409-02-2024Interim700.70
22-05-202317-08-2023Final600.60
10-03-202324-03-2023Interim600.60
30-01-202310-02-2023Interim600.60
23-05-202208-08-2022Final1501.50
03-03-202224-03-2022Interim1501.50
28-01-202209-02-2022Interim1501.50
22-06-202114-09-2021Final1201.20
25-02-202123-03-2021Interim1401.40
28-01-202108-02-2021Interim1401.40
02-07-202015-09-2020Final1401.40
31-01-202011-02-2020Interim1401.40
29-05-201920-08-2019Final1701.70
26-03-201927-03-2019Interim700.70
11-03-201919-03-2019Interim700.70
30-01-201908-02-2019Interim300.30
29-05-201820-08-2018Final400.40
31-01-201808-02-2018Interim1601.60
02-06-201714-08-2017Final1051.05
24-03-201729-03-2017Interim900.90
04-01-201702-02-2017Interim303.00
27-05-201618-08-2016Final14514.50
07-01-201604-02-2016Interim252.50
29-05-201510-08-2015Final23223.20
09-01-201528-01-2015Interim606.00
30-05-201412-09-2014Final17317.30
10-01-201429-01-2014Interim606.00
30-05-201306-09-2013Final16316.30
11-01-201330-01-2013Interim606.00
21-06-201207-09-2012Final10810.80
16-01-201201-02-2012Interim10010.00
29-06-201113-09-2011Final15615.60
11-01-201102-02-2011Interim606.00
25-06-201013-09-2010Final13213.20
12-01-201003-02-2010Interim606.00
25-06-200914-09-2009Final12712.70
06-01-200928-01-2009Interim606.00
27-06-200812-09-2008Final14714.70
10-01-200830-01-2008Interim606.00
27-06-200707-09-2007Final14014.00
03-01-200725-01-2007Interim404.00
30-06-200601-09-2006Final10610.60
18-10-200531-10-2005Interim404.00
22-06-200531-08-2005Final727.20
22-11-200407-12-2004Interim404.00
22-06-200407-09-2004Final10010.00
23-06-200329-08-2003Final707.00

Chart

Bharat Electronics Share Price Outlook: 1% Dividend Yield and 70% Payout, Up 109% from 52-Week Low - Is It Still a Buy?
Bharat Electronics Share Price Outlook: 1% Dividend Yield and 70% Payout, Up 109% from 52-Week Low - Is It Still a Buy?

Fundamental Analysis of Bharat Electronics Limited (BEL)

ParameterValue
Market Cap₹ 1,34,939 Cr.
Current Price₹ 185
High / Low₹ 196 / 89.6
Stock P/E37.8
Book Value₹ 20.3
Dividend Yield0.98%
ROCE29.9%
ROE22.8%
Face Value₹ 1.00
Pledged Percentage0.00%
EVEBITDA24.8
Change in Prom Hold0.00%
Debt to Equity0.00
Return on Equity22.8%
EPS₹ 4.88
Price to Book Value9.11
Dividend Yield0.98%
Debt₹ 61.4 Cr.

Peer Comparison

S.No.NameMar Cap Rs.Cr.P/EROCE %
1.Bharat Electron134,938.5237.8029.92
2.Data Pattern10,720.6564.6019.60
3.DCX Systems3,763.1942.4513.12
4.Apollo Micro Sys3,492.78129.4112.07

Shareholding of Bharat Electronics Limited (BEL)

HoldersMar-20Mar-21Mar-22Mar-23Dec-23
Promoters 51.14%51.14%51.14%51.14%51.14%
FIIs 10.71%11.58%16.77%16.42%17.77%
DIIs 30.21%30.21%26.71%25.50%23.37%
Public 7.95%7.07%5.38%6.95%7.72%
Govt.
Others

Last 5 Years’ Sales (In Cr.)

March 2019March 2020March 2021March 2022March 2023
12,16412,96814,10915,36817,734

Last 5 Years’ Net Profit (In Cr.)

March 2019March 2020March 2021March 2022March 2023
1,8871,8252,1002,4002,986

Balance Sheet of Bharat Electronics Limited (BEL)

 Mar-20Mar-21Mar-22Mar-23Sep-23
Equity Capital244244244731731
Reserves9,82810,81612,04213,13114,085
Borrowings 83536161
Other Liabilities 14,27118,43021,57421,56721,389
Total Liabilities24,35129,49233,91235,49036,267
Fixed Assets 2,7132,6522,6752,9633,427
CWIP8288831,006855433
Investments1,1101,3061,572650651
Other Assets 19,70024,65128,65931,02231,756
Total Assets24,35129,49233,91235,49036,267

Compounded Sales Growth

10 Years:11%
5 Years:11%
3 Years:11%
TTM:3%

Compounded Profit Growth

10 Years:13%
5 Years:16%
3 Years:18%
TTM:29%

CAGR

10 Years:35%
5 Years:47%
3 Years:58%
1 Year:97%

Return on Equity

10 Years:19%
5 Years:21%
3 Years:21%
Last Year:23%

Cash Flow (In Cr.)

ParticularsMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Operating Activities1,5142,5705,0934,2071,267
Investing Activities-896-649-2,595-4,8722,691
Financing Activities-663-1,061-1,076-1,078-1,313
Net Cash Flow-458611,422-1,7422,645

Revenue and Profit Trend

Financial YearRevenue GrowthProfit Growth
FY 2022-2315.23%28.0%
FY 2021-228.89%13.73%
FY 2020-218.84%15.14%
FY 2019-206.92%-6.92%
FY 2018-1917.07%37.73%

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Conclusion

This is a comprehensive guide to Bharat Electronics Limited (BEL). The above-mentioned information and data are as of February 04, 2024. These figures and projections are based on our research, analysis, company fundamentals and history, experiences, and numerous technical analyses. In addition, we have discussed in depth the share’s prospects and growth potential. Hopefully, these details will be useful in your future investments. If you’re new to our website and want to stay up-to-date on the newest stock market news, join our Telegram group. If you have any further questions, please leave them in the comments section below. We will gladly address all of your inquiries. If you enjoyed this information, please share it with as many people as possible.

Disclaimer: Dear Readers, we are not authorized by SEBI (Securities and Exchange Board of India). The information provided above is for educational purposes and should not be considered financial advice or stock recommendations. Share price predictions are for reference purposes and are based on positive market indicators. The analysis does not account for uncertainties about future or current market conditions. The author, brokerage firm, or Finreturns.com are not liable for losses resulting from decisions. Finreturns.com advises consulting with certified experts before investment decisions.

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