India’s Aerospace and Defence sector is currently experiencing a pivotal moment, thanks to the modernisation and indigenisation initiatives being implemented across all three branches of one of the world’s most formidable military forces.
The Ministry of Defence has outlined an ambitious goal to reach a turnover of ₹1.75 lakh crore in aerospace and defence manufacturing by the year 2025, a figure that includes an export target of ₹35,000 crore.
Bharat Electronics Limited (BEL), a public sector undertaking in the aerospace and defence industry, boasts a storied legacy that began in 1954. Headquartered in Bangalore, India, Bharat Electronics Limited (BEL) has been a significant contributor to the Indian defence sector, producing sophisticated electronic products for the Indian Armed Forces.
This article aims to dissect the recent Bharat Electronics Q4 results and analyse the market reaction.
About Bharat Electronics Ltd
Bharat Electronics Limited (BEL), a distinguished entity in the Indian Aerospace and Defence industry, has been making its mark since its inception in 1954. This Navratna Public Sector Undertaking (PSU), functioning under the aegis of the Ministry of Defence, Government of India, has been a pillar of strength in the sector.
BEL’s core expertise lies in the production of sophisticated electronic products for terrestrial and aerospace applications. The company boasts a wide-ranging product portfolio that includes radar and fire control systems, weapon systems, communication systems, network-centric systems (C4I), electronic warfare systems, avionics, anti-submarine warfare systems and sonars, and electro-optics, among others.
BEL has shown its commitment to innovation and technological advancement by branching out beyond its primary focus and into a variety of industries, including telecom products, night vision devices, medical electronics, composites, software solutions, energy storage, solar solutions, network security, smart cities, e-governance, electronic voting machines, telecom products, and solar energy.
Bharat Electronics share dividend history (last 1 year):
| Ex-Date | Dividend Amount | Dividend Type |
| 22 Mar 2024 | 0.70 | Interim |
| 09 Feb 2024 | 0.70 | Interim |
| 17 Aug 2023 | 0.60 | Final |
| 24 Mar 2023 | 0.60 | Interim |
Source: Trendlyne
Bharat Electronics share split: The stock of Bharat Electronics, trading under the ticker BEL.NS has experienced four stock splits in total. The most recent of these splits occurred on September 15th, 2022.
Must read: What is a stock split? Why do companies split stocks?
Bharat Electronics Q4 performance
Here are some of the key financial metrics of BEL Q4 results as compared to the previous quarter:
| Q4 FY24(₹ crores) | Q3 FY24(₹ crores) | Change(%) | |
| Revenue | 8,564 | 4,162 | 105.77 |
| Operating profit | 2,287 | 1,072 | 113.34 |
| Profit before tax | 2,390 | 1,132 | 111.13 |
| Net profit | 1,797 | 860 | 108.95 |
| EPS | 2.46 | 1.18 | 108.47 |
Bharat Electronics Limited (BEL) has demonstrated a remarkable performance in Q4 FY24, with significant growth across all key financial metrics. This robust performance underscores the company’s strong operational efficiency and profitability, reflecting positively on its strategic initiatives and market position.
Bharat Electronics’ annual performance
Here are the key financial indicators of the company, compared with the previous year:
| FY2024(₹ crores) | FY2023(₹ crores) | Change(%) | |
| Revenue | 20,268 | 17,734 | 14.29 |
| Operating profit | 5,046 | 4,090 | 23.37 |
| Profit before tax | 5,266 | 3,923 | 32.23 |
| Net profit | 3,985 | 2,986 | 33.46 |
| EPS | 5.45 | 4.08 | 33.58 |
Also read: Q4 update: Kamat Hotels India Ltd performance details
Latest news about Bharat Electronics share
Bharat Electronics declared its Q4 results on 20 May 2024, before that the Bharat Electronics share closed at ₹258.80 (on May 18, 2024).
On the first trading day after the Bharat Electronics Q4 results announcement (21 May 2024), the Bharat Electronics share price opened at ₹283.00 and hit a 52-week high. This is a significant surge of 9.35%.
Reflecting on the Bharat Electronics share price history, the upward trend observed over the past 5 days is distinctly noticeable, indicating a positive market sentiment towards the company.
Bharat Electronics share price target:
Nomura India anticipates that Bharat Electronics Limited (BEL) will showcase a Compound Annual Growth Rate (CAGR) of 16% in Profit After Tax (PAT) from FY23F to FY26F. They have proposed a target price of ₹300 for this defence stock.
On the other hand, Motilal Oswal has recommended a ‘buy’ for Bharat Electronics Ltd., setting a target price of ₹310.
Must read: Bajaj Electricals’ Q4 results: What led to the profit decline?
Peer analysis
Let’s compare the key financial ratios of Bharat Electronics with that of its competitors:
| Company | CMP (₹) | Market cap(₹ crores) | P/E | Earnings Yield (%) |
| Bharat Electronics | 279.80 | 1,99,667 | 50.1 | 2.78 |
| Hindustan Aeronautics | 4,831 | 3,23,082 | 42.6 | 3.49 |
| Data Patterns | 3,124 | 17,492 | 96.2 | 1.45 |
| Azad Engineering | 1,465 | 8,662 | 148 | 1.41 |
| MTAR Technologies | 2,106 | 6,478 | 79.1 | 1.94 |
| Apollo Micro Systems | 112 | 3,169 | 100 | 2.27 |
Bottomline
Bharat Electronics Limited (BEL) has showcased an impressive performance in its Q4 FY24 and annual FY24 results, highlighting its crucial contribution to India’s Aerospace and Defence sector.
The company’s strong financial performance has positively influenced the market’s perception. This is evident from the substantial rise in its share price post the announcement of Q4 results. The increase of 9.35%, hitting a 52-week high, signifies a high level of investor trust and a positive outlook towards BEL’s future growth.
As a fundamental pillar of India’s defence manufacturing capabilities, Bharat Electronics Limited’s strategic plans, operational efficiency, and financial stability set it up for sustained success. It presents an attractive prospect for investors looking to capitalise on the expansion in the Aerospace and Defence sector.
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