Navratna defence stock jumps 6% after reporting 38% increase in net profit

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The share price of this Navratna Defence company was up by 6 percent from the day’s low on Friday after Reporting a net profit increase of 38 percent.

Share Price Movement

In Friday’s trading session, BEL’s share price was up by 6 percent from the day’s low of Rs. 257.40 touching the day’s high of Rs. 273.60. The stock was trading at Rs. 270 per share and was down around 0.63 percent from the previous close of Rs.271.40 per share. In the past year, the stock has given around 105.49 percent returns.

Q2FY25 Results update

The stock surge was driven by the good results in revenue and net profits reported by Bharat Electronic Ltd for the recent quarter.

In its latest filing for the quarter ending September 2024, the company announced a 14.86 percent rise in revenue, reaching Rs.4,604.9 crore compared to Rs.4,009.06 crore in Q2 FY24. On a quarter-over-quarter basis, the operational revenue was up by 8.51 percent from Rs.4,243.57 crore in Q1FY25.

During the same period, net profit increased by 38.37 percent to Rs.1,092.8 crore in Q2 FY25, compared to Rs.789.71 crore in Q2 FY24, and up by 38.10 percent from Rs.791.28 crore in Q1 FY25.

Regarding return ratios, the return on capital employed (ROCE) currently stands at around 34.6 percent, whereas the return on equity (ROE) is at 26.3 percent. The stock is trading at a P/E (Price to Earnings) ratio of around 46.6. The company also has a current ratio of 1.55

and little or no debt in the company. The order book as of 1st October stood at Rs. 74,595 crore. The EBITDA margin expanded from 25.2 percent in Q2FY24 to 30.3 percent in Q2FY25.