Share Price of BEL Recovers After Result Announcement

Bharat Electronics Q2FY25 Profit Soars by 34.4%

Bharat Electronics Ltd. (BEL), a Navratna defence company, has reported impressive financial results for the second quarter of FY25, demonstrating solid growth in profitability and revenues. BEL recorded a net profit of Rs 1,091.27 crore, which represents a significant 34.4% increase compared to Rs 812.34 crore in the corresponding period of the previous year. This strong profit growth highlights the company’s resilience and its strategic initiatives to enhance operational efficiency.

Robust Revenue Growth and Strong Order Book

During Q2FY25, BEL’s revenue also saw a healthy uptick. The company’s revenues rose by 14.8%, reaching Rs 4,583.41 crore compared to Rs 3,993.32 crore in Q2FY24. This growth demonstrates BEL’s continued ability to deliver on its projects and drive sales in a competitive market. Furthermore, the order book as of October 1, 2024, stands at an impressive Rs 74,595 crore, ensuring a healthy pipeline of future projects.

EBITDA Growth and Margin Improvement

BEL’s operating performance also improved, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rising by 38.3% year-on-year. EBITDA for Q2FY25 came in at Rs 1,388.5 crore, up from Rs 1,004 crore in the same quarter last year. The EBITDA margin expanded by more than 500 basis points, improving to 30.3% from 25.2%, reflecting the company’s ability to control costs and boost profitability amid a challenging environment.

Share Price Recovery and Volume Surge

Following the result announcement, BEL’s share price recovered from its recent lows, reaching Rs 271.85 per share on the NSE. The stock had earlier touched an intraday low of Rs 257.45 before rebounding. Notably, the share price took support around the 200-day moving average (200-DMA), a key technical level that often indicates market sentiment. The total traded volume on the NSE was approximately 3.68 crore shares, showcasing strong investor interest in the stock post the announcement.

BEL Share Price Performance: A Look Back

Despite the recent decline of 20% from its 52-week high of Rs 340.50, BEL’s share price has been a strong performer. In October, the stock experienced a 4.5% drop, but year-to-date (YTD), BEL has surged by over 48%. Over the past year, the stock has delivered multibagger returns, appreciating by 107%. In the last three years, BEL’s share price has soared by an impressive 305%, rewarding long-term investors significantly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.