Multibagger defense stock: There is a rush to buy the shares of Bharat Electronics, a defense company giving multibagger returns in the stock market. The stock rose 4% on Tuesday, the second trading day of the week. The reason for this rise in shares is the company’s order worth ₹ 500 crore.
share status
Last Monday, shares of Bharat Electronics closed at Rs 267.35 on the BSE index. These shares reached the level of Rs 277.80 during trading, which shows a jump of 4%. The share price on July 10, 2024 was at Rs 340.35. This is the 52-week high of the stock. In October 2023, this share was at the level of Rs 127. This is the 52-week low level of the stock.
In this context, the share price of Bharat Electronics is 19% less than the July high, yet this share has given returns of more than 100% to investors in the last one year. Domestic brokerage Prabhudas Lilladher Institutional Equities has set a target price for the stock at ₹341.
The company has received the order
State-run Navratna defense company Bharat Electronics said it has secured additional orders worth over ₹500 crore since its last disclosure on September 11, 2024. EMI shelters, AMCs for integrated air command and control system nodes, upgrades and spares for gun systems, radar spares, communication system spares etc. are among the major orders received by Bharat Electronics. With these, Bharat Electronics has already secured orders worth ₹7,689 crore for the current financial year.
Expert opinion
Experts are positive about the company’s prospects, as a strong order book improves the outlook. Analysts at Prabhudas Lilladher Institutional Equities believe Bharat Electronics prospects will remain strong due to strong order backlog and pipeline, government’s emphasis on defense indigenization and improving margin profile. They expect the company to report revenue and adjusted net profit CAGR (compound annual growth rate) of 17.6% and 17.3% respectively during FY24-26.
