BEL shares scale all-time high on the back of strong results, management commentary, FY25 outlook: 10 things to know

Bharat Electronics Ltd (BEL) Share Price, Market News: Bharat Electronics Ltd (BEL) shares scaled a fresh peak on Dalal Street riding on the back of the state-run electronic equipment manufacturer's better-than-expected quarterly results, strong management commentary, and positive outlook for the current financial year. The stock of Bengaluru-headquartered BEL gained by as much as Rs 10.3, or 3.7 per cent, to a record high of Rs 284.4 apiece on BSE, surpassing an earlier peak of Rs 282.8 apiece scaled the previous day. The sharp upmove in the stock also comes after foreign brokerages Jefferies and Morgan Stanley raised their targets for the multibagger PSU stock by 17 per cent and 14 per cent to Rs 305 and Rs 300 respectively, implying an upside of 9-11 per cent from its closing price on Tuesday.  

Here are 10 things to know about BEL:  

• On Monday, BEL staged a strong financial performance for the fourth and final quarter of FY24. While its standalone net profit jumped 30.6 per cent on a year-on-year basis to Rs 1,783.5 crore, its revenue grew 32.1 per cent to Rs 8,529 crore for the January-March period. Both exceeded analysts' expectations. 
• According to Zee Business analysts, BEL was estimated to register a quarterly net profit of Rs 1,490 crore and revenue of Rs 8,417 crore. 
• The PSU also surprised analysts on the operational front, as its fourth-quarter EBITDA grew by one-fourth to Rs 2280 crore and its margin, a key measure of profitability, came in at 27 per cent. The analysts had pegged BEL's quarterly EBITDA at Rs 1,969 crore and margin at 23 per cent. 
• The company's revenue, EBITDA and net profit were its best ever, both quarterly as well as yearly.
• The margin was much higher than the company's earlier guidance of 21-23 per cent.
• BEL announced a final dividend of 80 paise per share for the financial year 2023-24 (FY24).  
• Jefferies maintained a 'buy' rating on BEL after the PSU's earnings announcement and raised its target for the stock by Rs 45 to Rs 305.  
• According to Jefferies, BEL is likely to register double-digit percentage growth in revenue over the FY24-FY26 period on the back of its strong order book and pipeline.

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• Morgan Stanley retained its 'overweight' call on BEL and raised its target by Rs 37 to Rs 300. 
• On a conference call, the BEL management gave a strong outlook for the current financial year, with a goal of double-digit revenue growth. It guided for a margin to the tune of 23-25 per cent for the year. 

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