Bharat Electronics Ltd (BEL) shares saw marginal gains in early trade on April 3 after the company signed a maintenance contract worth Rs 593.22 crore with the Indian Air Force (IAF). The agreement covers servicing support for the Akash Missile System, which BEL had previously supplied to the IAF.
At 09:55 AM, BEL was trading at Rs 283.10 on the BSE, up 0.25 per cent from the previous close. The stock has gained 28 per cent over the last year, reflecting strong investor confidence in the company’s growing defence orders.
Order book strengthens with Rs 5,000 crore pipeline
Beyond the latest IAF contract, BEL has concluded negotiations for orders worth Rs 5,000 crore. The company also reported robust order inflows in March, securing a Rs 2,463 crore deal for Ashwini Radars from the IAF and additional contracts worth Rs 2,805 crore.
For the financial year 2024-25, BEL recorded a turnover of around Rs 23,000 crore, marking a 16 per cent year-on-year growth. Export sales contributed around USD 106 million to this performance.
Stock trades 17% below 52-week high
BEL’s stock movement has been notable in the past year. It hit a 52-week high of Rs 340.35 on July 10, 2024, and a low of Rs 218.30 on April 4, 2024. At the current levels, the stock is trading 16.82 per cent below its peak and 29.68 per cent above its yearly low.
The company’s market capitalisation stands at Rs 2,06,939.84 crore, reinforcing its position as a key player in India’s defence sector.
Strong momentum in defence contracts
BEL’s latest deal aligns with the Indian government’s focus on indigenous defence production and self-reliance. With a steady pipeline of new orders and ongoing collaborations with the armed forces, the company remains well-positioned for sustained growth.
Investors will be watching for further updates on BEL’s contract wins and financial performance in the upcoming quarters.
