703% return in 5 years: This Navratna defence PSU stocks in focus as company forms JVC with Israel Aerospace Industries - Do you own?

Navratna defence PSU Bharat Electronics Limited (BEL) has formed a joint venture company (JVC) with Israel Aerospace Industries (IAI) - Israel's leading aerospace and defence company. The joint venture has been named BEL IAI AeroSystems Private Ltd.

The JVC with its registered office in Delhi shall be the single point of contact (SPOC) for extending long-term product support to the Medium Range Surface-to-Air Missile (MRSAM) systems of India's defence forces, Bengaluru-headquartered BEL said in a statement on Thursday.

"The partnership marks another significant step in cementing the relationship between the two companies that have a long history of association for strategic programmes. BEL and IAI are collaborating on several joint programmes for the Tri-services," it said.

Meanwhile, the stock of BEL opened in red at Rs 274.70 against the previous close of Rs 283.95 on the BSE. The counter gained and touched a high of Rs 286.20. Last seen, the counter was trading at Rs 283.95.

The stock has given a multibagger return of over 100 per cent in one year and over 700 per cent returns in 5 years. 

Meanwhile, BEL said the JVC has been set up to provide life cycle support, both technical and maintenance related, for MRSAM air-defence systems of the country.

MRSAM is an advanced, path-breaking air and missile defence system that provides protection against a variety of aerial threats, according to the company.

It was jointly developed by IAI and DRDO for India's defence forces and is currently used by the Indian Air Force, Indian Army, Indian Navy and also Israeli defence forces, it was noted. The system includes an Advanced Phased Array Radar, Command and Control shelter, mobile launchers and interceptors with an advanced RF seeker.

The formation of JVC, which will leverage the capabilities of both IAI and BEL, is in line with the Indian Government's vision of 'Atmanirbhar Bharat', it said.