BEL's bonus shares issue proposal to be considered in board meet this week

02 Aug , 2022 By : Kanchan Joshi

Bharat Electronics Ltd (BEL) on Monday informed the exchanges that its board will meet this week on Thursday, August 4, to consider the proposal of the issuance of bonus equity shares. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

“We wish to inform that a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, the 4th August, 2022 inter alia to consider a proposal for issue of Bonus Shares to the equity shareholders of the Company," BEL said in a BSE filing.

For the first quarter ended June 2022 (Q1FY23), the company's standalone net profit rose to Rs431 crore as against Rs11. crore recorded in the corresponding period of the previous year. Standalone turnover for the period stood at Rs3,063.58 crore against Rs1564.34 crore in the same quarter last year. As of June 30, 2022, the company's order book position is around Rs55,333 crore.

“Bharat Electronics’ (BEL) management has reiterated its guidance of 15% top-line growth, 21-23?ITDA margin and ~ Rs200 bn order inflow for FY23. Order inflow guidance for FY23 is in line with our assessment of 5 years’ order inflow possibility of Rs1,110 bn. Management highlighted that possible order inflow from QRSAM (Rs200bn) and MRSAM ( Rs150-200bn) can happen in FY24," highlighted brokerage ICICI Securities in a post earnings note on July 21.

"For the last 5 years, there has been an overhang on BEL’s earnings from the expectations of reducing margins. With management assessment of ~200 bps of cost benefit in raw materials and a stated confidence to maintain margins in 21-23% range, with high confidence on achieving the upper band, it can be safely stated that margin compression concerns are a thing of the past. This is also likely to improve EPS growth prospects in BEL, in our view," the brokerage added.

BEL shares are up more than 55% in a year's period whereas the PSU defence stock has surged about 35% in year-to-date or YTD terms as compared to a 2?ll in benchmark BSE Sensex.