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Espresso shot of the day – Bharat Electronics Ltd up by 11.23 percent)

Espresso shot of the day – Bharat Electronics Ltd up by 11.23 percent

June 23, 2021

BHARAT ELECTRONICS LTD 168.35 (+11.23%) BSE – INE263A01024 | 23RD JUNE 2021


In 1954, in a newly independent India, the need was utmost to develop indigenous industry. The dream of a self-reliant India gave birth to many Public Sector Undertakings. Bharat Electronics Limited (BEL) was one such dream, which has come a long way since then with the far-sighted vision of its pioneers, the dedication and hard work of its employees, support and faith of its customers and the Government of India. The Government’s clarion call for ‘Make in India’ resonates with what BEL has been successfully doing for over 6 decades. From humble beginnings in 1954, when BEL was set up in association with CSF, France (now, Thales), to manufacture basic communication equipment, BEL now produces a wide range of state-of-the-art equipment in fields such as Defence Communication, Radars, Naval Systems, C4I Systems, Weapon Systems, Homeland Security, Telecom & Broadcast Systems, Electronic Warfare, Tank Electronics, Electro Optics, Professional Electronic Components and Solar Photovoltaic Systems, BEL also provides turnkey system solutions. Civilian products from BEL include Electronic Voting Machines, Tablet PC, solar-powered traffic signal systems and Access Control Systems. Starting from a single Unit in Jalahalli, Bangalore, BEL has established its presence across the country by setting up eight other Units – in Ghaziabad, Pune, Machilipatnam, Panchkula, Kotdwara, Navi Mumbai, Chennai and Hyderabad. Each Unit has a specific product mix and customer focus. BEL has also set up a wide network of offices and service centres countrywide as well as two overseas offices – at New York and Singapore.

Recent Drivers

  • On 23rd June, 2021, Bharat Electronics Limited reported net profit of Rs 1352.38 crores in the quarter ended March 2021, up 30.73 % year-on-year (YoY) compared to Q4 FY20.
  • On 23rd June, 2021, Bharat Electronics Limited’s sales rose 18 % to Rs 6757.05 crores in the quarter ended March 2021 against Rs 5725.49 crores during the previous quarter ended March 2020.
  • On 22nd June, 2021, Board of Directors of the Company at their meeting has recommended a final dividend of Rs 1.20/- per equity share (120%) of Rs 1/- each fully paid-up for the financial year 2020-21. It is subjected to approval by the shareholders in the next Annual General Meeting of the Company.
  • On 16th June, 2021, As the second wave of COVID-19 pandemic subsides, the Centre has launched 'Project O2 for India' to step up production of medical oxygen to meet the potential increase in demand due to further waves of the pandemic. The manufacturing and supply consortium also includes Bharat Electronics Ltd, Tata Consulting Engineers, C-CAMP, Bengaluru, IIT Kanpur, IIT Delhi, IIT Bombay, IIT Hyderabad, IISER, Bhopal, Venture Center, Pune, and more than 40 MSMEs.
  • On 16th June, 2021, Israel Aerospace Industries (IAI) donated as many as 100 oxygen concentrators to defence PSU, Bharat Electronics Limited (BEL), as a goodwill gesture during pandemic time, and in view of its long-standing business relationship with BEL. Anandi Ramalingam, Director - Marketing, BEL, said “We would like to express our sincere and heartfelt thanks to IAI for its pro-active and timely support in providing a large number of oxygen concentrators to BEL. It is a kind, thoughtful and generous gesture from IAI to have extended a prompt helping hand for our employees and their families who are facing extreme hardships due to the Covid-19 pandemic.”
  • On 5th April, 2021, Bharat Electronics Limited (BEL) received 12 Green Channel Certificates for a total of 41 products manufactured at 10 SBUs/ Units.
 (Sources: The Hindu Business Line, Moneycontrol, BSEIndia)

Technical Force*

  • S&P BSE 200 month till date gain up by 1.19%
  • Traded on new 52 Week high value of 169.95
  • Spurts in volume by more than 10.48 times compares to previous vol. 3 months avg. volume: 8,08,325
  • Quantity traded: 52,11,029| Deliverable quantity: 9,71,153 (18.64%)
  • Stock price has jumped more than 100% from one year low level: 80.55 (June 23, 2020)
  • Daily RSI (14) is in Overbought territory today
  • 52-week-high: 169.95 | 52-week-low: 80.55

Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

210.53

166.87

143.43

99.77

76.33

32.67

9.23

-

Fibonacci Pivot

166.87

141.23

125.40

115.20

99.77

84.33

74.13

58.30

32.67


Today’s Close

168.35

SMA

BSE

10 DAY

151.94

20 DAY

150.78

50 DAY

143.24

200 DAY

123.17

Some Key Ratios (Source: BSE)

Market Cap: 41,020.04 crores

PE: 23.47

OPM%: 20.18

ROE%: 17.65

Promoters holding%: 51.14

Prev. Close: 151.35

*Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.