Rs 71,650 Crore Order Book: Multibagger Defence Stock Tata Electronics Sign MoU to Boost India’s Semiconductor Self-Reliance

Over the past year, the company has delivered significant returns, with a 1-year return of 25.13 per cent. The 3-year return stands at 386 per cent, and the 5-year return is an impressive 1,575 per cent. 

Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking, has announced a strategic collaboration with Tata Electronics to accelerate India's journey toward self-reliance in the electronics and semiconductor sectors. The partnership was formalised through a Memorandum of Understanding (MoU) signed by BEL’s Chairman & Managing Director, Mr. Manoj Jain, and Tata Electronics' CEO & Managing Director, Dr. Randhir Thakur.

This alliance aligns with the Government of India's broader vision of promoting indigenous capabilities in critical sectors. The MoU outlines a framework to jointly explore opportunities in Semiconductor Fabrication, Outsourced Semiconductor Assembly and Test (OSAT), and design services. The collaboration will support BEL’s current and future needs, particularly in the development of Microcontrollers, Systems-on-Chip (SoC), and Monolithic Microwave Integrated Circuits (MMICs). Both companies will share knowledge and adopt best practices to enhance the efficiency and quality of BEL’s manufacturing ecosystem.

As of June 6, 2025, BEL’s stock is trading at Rs 390.7, close to its 52-week high of Rs 393.7 and significantly above its 52-week low of Rs 244.55. The stock has delivered strong returns, reflecting investor confidence and solid business momentum. Its performance could attract interest from institutional investors and those seeking potential multibagger opportunities within the Mid-Cap segment.

Established in 1954, BEL is a leading manufacturer and supplier of advanced electronic systems primarily for the defence sector, while also expanding into civilian markets. The company operates 29 strategic business units, including those dedicated to Network & Cyber Security and Unmanned Systems. In FY24, defence contributed 81 per cent to total revenue, posting a 19 per cent year-on-year growth. Meanwhile, the non-defence segment, including Homeland Security and Smart City Solutions, grew by 157 per cent, and exports surged by 236 per cent.

BEL currently has an order book of Rs 76,705 crore, largely comprising defence contracts. To support future growth, BEL has announced a capital expenditure plan of Rs 800 crore for FY25. The company continues to prioritise innovation, with 77 per cent of its turnover derived from indigenous products and the launch of 40 new products in FY24. BEL aims to grow its non-defence revenue share to 30 per cent and is targeting an overall revenue growth of 15 to 17 per cent in FY25.

As of June 6, 2025, Bharat Electronics Ltd.'s share price cwas trading at Rs 390.90, showing a slight decrease of 0.66 per cent intraday. Over the past year, the company has delivered significant returns, with a 1-year return of 25.13 per cent. The 3-year return stands at 386 per cent, and the 5-year return is an impressive 1,575 per cent. 

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. The Profit Before Tax (PBT) for FY 2024-25 reached Rs 7,089.99 crore, showing a substantial increase of 32.91 per cent over the previous year's PBT of Rs 5,334.56 crore, and the fourth quarter PBT rose to Rs 2,847.62 crore from Rs 2,385.61 crore. 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 4,020.00 crore, while the fourth quarter PAT increased to Rs 2,104.78 crore from Rs 1,783.52 crore.

Disclaimer: The article is for informational purposes only and not investment advice.