Company Snapshots

• Incorporated in 1954, Bharat Electronics Ltd was formed under the Ministry of Defence to handle Indian Defense electronic needs
• Company manufactures and supplies electronic equipment and systems to the defence sector.
• BEL is a multi-product, multi-technology, conglomerate that provides products and systems to India’s armed forces.

Revenue Breakup

1) Defence Segment –

• 89.8% revenue comes from defence segment
• Manufactures Radars and fire Control Systems, Missile Systems, Communication and C4I systems, Electronic Warfare & Avionics, Naval Systems & Antisubmarine Warfare Systems, Electro Optics, Tank Electronics & Gun Upgrades, etc\

2) Non- Defence Segment-

• 10.2% revenue comes from the non defence segment.
• Manufactures EVM & VVPAT, provides services to Railway, Metro, space electronics, Airport solutions, etc

Fundamental Analysis

Key Ratios

Financial Trend

Revenue: 5  Year Comparison

• 2020: 12,968
• 2024: 20,268
• 5 Year Percentage change: $56.29\%$

Net Profit: 5 Year Comparison

• 2020: 1,824
• 2024: 3,985
• Percentage change: $118.48\%$

Shareholding Pattern

Change in Shareholding Pattern

Promoters

• Mar-23: 51.14%
• Mar-24: 51.14%
• 1 Year Change: 0.00%
  • Analysis: The promoters’ shareholding has remained constant over the year, indicating no change in their ownership stake.

FIIs (Foreign Institutional Investors)

• Mar-23: 16.42%
• Mar-24: 17.56%
• 1 Year Change: +1.14%
  • Analysis: FIIs have increased their stake by 1.14 percentage points, reflecting growing interest or confidence from foreign investors.

DIIs (Domestic Institutional Investors)

• Mar-23: 25.50%
• Mar-24: 22.63%
• 1 Year Change: -2.87%
  • Analysis: DIIs have reduced their stake by 2.87 percentage points. This decrease could indicate a reallocation of investments or reduced confidence in the company.

Public

• Mar-23: 6.95%
• Mar-24: 8.66%
• 1 Year Change: +1.71%
  • Analysis: The public shareholding has increased by 1.71 percentage points. This rise might indicate an increased interest from retail investors or a greater number of shares being available to the public.

Stock Price Returns

1 Year Stock Returns

• Bharat Electronics Limited has given 1 Year returns of 159.66 %
• 1 Lakh invested in June 2023 would have become 2.59 Lakhs in June 2024

5 Year Stock Returns

860% returns in 5 years

• Bharat Electronics Limited has given 1 Year returns of 860.15 %
• 1 Lakh invested in June 2020 would have become 9.60 Lakhs in June 2024

Bharat Electronics Limited Valuation

• Current PE- 56.1
• Median PE- 21.9
  
• Company is Overvalued: As the Median PE is less than the Current PE, so we can say that company is company is  overvalued.
• Current Modi Government is focusing on the defence sector, this is the reason all the defence sector companies are trading at a higher valuation.

Should you Invest ?

• Bharat Electronics Ltd is a public sector company & Government has boosted the PSU sector companies & that is the reason if you are thinking of staying invested for the next 5 years then you can go ahead with this company
• Company has really strong fundamentals & the strong Revenue & Net Profit Growth over the last 5 years.
• As the BEL has the large market cap of 2.3 lakh crore in order to double up your invested money then market cap has to go to 4.6 lakh crore & which is achievable in the nest 5 years till 2029
• Do not consider investing in this company if you are looking to book small term profit

Check Out this- DCX Systems: Best Defence Sector stock invest in 2024

Disclaimer

• Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
• This article is a complete guide about Bharat Electronics Limited.
• These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
• Also, We have talked in detail about the share’s future prospects and growth potential.
• Hopefully, this information will help you in your further investment.
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