The defence sector has attracted a lot of investments in the last seven years and more investments are expected.
Shares of this A Group listed PSU defence sector company have been in the limelight of late. The shares have a face value of Re. 1. The shares touched a 52-week high of Rs. 242 and low of Rs. 120.
BEL is the largest supplier to the defence segment in India. It also makes specialised electronics products for the
defence sector. It also makes EVMs that are used in elections. It has a market cap of Rs. 58,380 crore. Its equity is Rs. 243 crore and reserves Rs. 10,815 crore. For the December quarter, its income increased from Rs. 2343 crore to Rs. 3761 crore, and profit zoomed from Rs. 270 crore to Rs. 584 crore.
Recently, Defence Minister Rajnath Singh released the third positive indigenisation list of 101 equipment and platforms, which the Services can procure only from the domestic industry. The list includes naval utility helicopters, light tanks, small Unmanned Aerial Vehicles, and anti-ship missiles among others. The budget also made significant provisions for R&D in the defence segment.
The stock can be seen at a new high in the short to medium term and Rs. 350 in the long term.
