In a major boost to India's indigenous defence manufacturing sector, Bharat Electronics Ltd. (BEL) has secured new orders worth Rs 695 crore. The state-run defence behemoth received these orders for a diverse array of advanced defence technologies, encompassing Combat Management Systems, Communication equipment, Stabilized Optronic Pedestals, along with essential upgrades, spares, and services.
These new acquisitions bolster BEL's order book for the current financial year to an impressive Rs 5,920 crore, reflecting the company's robust growth trajectory. The latest orders also underscore BEL's pivotal role in strengthening India's defence capabilities and its steadfast commitment to the 'Make in India' initiative.
BEL's newly acquired orders encompass a broad spectrum of critical defence technologies.
Combat Management Systems (CMS) enhance warships' combat readiness and operational efficiency, providing real-time data processing, threat analysis, and decision-making support.
The communication equipment supplied by BEL will fortify secure and reliable data exchange between various units, critical for modern military operations.
Meanwhile, Stabilized Optronic Pedestals offer advanced electro-optical capabilities for surveillance and target acquisition, essential for high-precision targeting and improved situational awareness.
The orders also include upgrades to existing systems, spares, and maintenance services, ensuring the longevity and operational readiness of defence equipment.
The company's Q1 FY25 results showcased a 46% YoY jump in net profit to Rs 776.14 crore, with revenue from operations up 19.6% YoY at Rs 4,198.77 crore, further solidifying its financial strength.
However, brokerage views remain divided on BEL's stock. JM Financial maintains a 'Buy' rating, anticipating robust growth in the coming years. Nuvama holds a 'Hold' rating, citing a significant re-rating across the defence value chain, while Nirmal Bang Institutional Equities maintains a 'Sell' call, expressing concerns about steep valuations relative to fundamentals.
Overall, BEL's success in securing these substantial new orders highlights its technological prowess and underscores its significant contribution to bolstering India's defence sector. The company's strong performance and impressive order book suggest a promising outlook for its future growth and its role in fortifying India's self-reliance in defence manufacturing.
