Indian benchmark indices started the week in the red territory following an 11-session winning streak. Notably, the telecommunications, real estate, information technology, and metal sectors experienced substantial losses. Broader indices followed suit and registered declines in line with the main indices.
However, among the BSE Largecap pack, shares of Bharat Electronics Ltd (BEL) garnered investor interest, emerging as one of the top gainers. On an intraday basis on Monday, shares of Bharat Electronics Ltd climbed more than 6%, reaching an intraday high of Rs 145 per share on the BSE. There has been a noteworthy increase in buying activity, primarily fueled by the company’s announcement of securing a substantial order.
The company earlier revealed that it has secured a significant order worth Rs 2,118.57 crore from Cochin Shipyard Limited. This order encompasses the supply of diverse equipment, including sensors, weapon systems, fire control systems, and communication equipment for six Next Generation Missile Vessels (NGMV), a class of anti-surface warfare corvettes commissioned for Indian Navy.
The company has recently secured additional orders totaling Rs 886 crore since the last disclosure. These orders involve various projects, including the upgrade of AFNET SATCOM Network, the enhancement of Akash Missiles with RF Seeker technology, Inertial Navigation Systems, and the provision of other related equipment, along with accessories and spares. The company emphasized that the equipment produced by BEL plays a pivotal role in the ‘Aatmanirbhar Bharat’ (Self-Reliant India) initiative.
With this latest order, the company has accumulated a total of Rs 14,384 crore in orders for the financial year 2023-24 so far. Over the past six months, shares have soared more than 50%, and they are currently trading close to their 52-week high of Rs 147.20 per share on the BSE.
Bharat Electronics Limited (BEL) is a Navratna PSU under the Ministry of Defence, Government of India. It manufactures state-of-the-art electronic products and systems for the Army, Navy and the Air Force.
Keep a close eye on this stock for the upcoming sessions!
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.