Bharat Electronics Bags ₹850 Cr Order From Cochin Shipyard

Bharat Electronics Limited (BEL) has secured orders totalling ₹1,155 crore, bolstering its order book in the current financial year.

What Happened: The Navratna Defence PSU, BEL, revealed on Wednesday that it has won an order of ₹850 crore from Cochin Shipyard Limited (CSL) for supplying indigenous Multi-Function Radar in X Band. As per the company’s press release, “This fully indigenous radar designed by DRDO and manufactured by BEL is capable of detecting, acquiring and tracking airborne targets to protect naval ships.”

Besides the CSL order, BEL has also bagged orders worth ₹305 crore since its last disclosure on August 22. These orders encompass navigational complex systems for ships, thermal imagers, communication equipment, fire control systems, gun control systems, spares, services, and more. The latest orders have pushed the total value of orders amassed by BEL in the current financial year to ₹7,075 crore.

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Earlier today, Kotak Institutional Equities pointed out a gap between the real value and current market capitalisation of "narrative" investment and public sector stocks, including BEL. Despite a recent correction in these stocks, the overall market sentiment remains euphoric, with frothy valuations in most sectors and large inflows to domestic mutual funds from price-agnostic investors.

BEL along with Trent is set to replace Divi’s Laboratories and LTIMindtree in the Nifty September rejig. The inclusion was based on the company’s six-month average free-float market capitalisation being at least 1.5 times that of the smallest constituents, Divi's and LTIMindtree.

Price Action: BEL’s share price was up 0.56% to trade at ₹287.35 in the late hours of trading on Wednesday.

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