FIIs bought 1,53,68,938 shares; Rs 2,860 crore orders bagged & Rs 71,650 crore order book: Multibagger defence stock overtakes Tata Group Company in terms of market cap
The stock gave multibagger returns of 420 per cent in 3 years and a whopping 1,600 per cent in 5 years.
In a significant development, a multibagger defence stock has surpassed a prominent Tata Group company in terms of market capitalisation. Reaching an intraday high of Rs 2,94,218 crore, this defence sector performer has overtaken Tata Motors Ltd, which recorded an intraday high market cap of Rs 2,62,848 crore. This reflects a notable shift in market valuation, highlighting the rapid growth of this defence sector share.
The buzzing defence stock is Bharat Electronics Ltd (BEL)
On Monday, shares of Bharat Electronics Limited (BEL) gained 2.1 per cent to an intraday high of Rs 402.50 per share from its previous closing of Rs 394.30 per share. The stock also made a new 52-week high of Rs 402.50 per share and its 52-week low is Rs 240.15 per share. The shares of the company saw a spurt in volume by more than 2 times.
Navratna Defence PSU Bharat Electronics Limited (BEL), established in 1954, is a prominent Indian government-owned company under the Ministry of Defence. They specialise in manufacturing cutting-edge electronic products and systems for the Indian armed forces, encompassing areas like radars, missile systems, communication technologies, electronic warfare systems, avionics for aircraft, naval systems, and even tank electronics. While their primary focus is defence, BEL also has a limited presence in the civilian market, offering solutions in cybersecurity, e-mobility, railways, e-governance and more.
During FY 2024-25, the company achieved a Turnover of Rs 23,024.10 crore, marking a growth of 16.17 per cent compared to the previous year's Turnover of Rs 19,819.93 crore, with the fourth quarter contributing Rs 8,850.42 crore against Rs 8,335.01 crore in the corresponding period. Furthermore, the Profit After Tax (PAT) for the fiscal year stood at Rs 5,288.25 crore, reflecting a growth of 31.55 per cent over the previous year's PAT of Rs 4,020 crore, while the fourth quarter PAT increased to Rs 2,104.78 crore from Rs 1,783.52 crore.
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Bharat Electronics Limited (BEL) has received orders worth Rs 2,323 crore from MDL and GRSE for missile system spares for Indian Naval ships. Additionally, BEL secured another Rs 537 crore in orders for various defence equipment, including communication systems and jammers.
The company has a market cap of Rs 2.89 lakh crore and has been maintaining a healthy dividend payout of 39 per cent. The company’s order book stands at Rs 71,650 crore as of April 01, 2025. In March 2025, FIIs bought 1,53,68,938 shares and increased their stake to 17.56 per cent compared to December 2024.
The company's shares have an ROE of 29 per cent and an ROCE of 39 per cent. The stock gave multibagger returns of 420 per cent in 3 years and a whopping 1,600 per cent in 5 years. The stock, which traded at a mere Rs 0.25 in 1999, has experienced exponential growth, delivering a mind-boggling 1,60,900 per cent return to its investors.
Disclaimer: The article is for informational purposes only and not investment advice.