BEL

PSU stock, Bharat Electronics Ltd (BEL) hit a new 52-week high on the back of its very good performance for Q3Fy15. This aerospace and defence company posted a 35% (YoY) rise in net sales at Rs.1582 crore and ended the quarter with a healthy 42% jump in net profit at Rs.272 crore. Operating profit rose 58% at Rs.272 crore and margin was up from 15.19% to 17.57%.  Another very encouraging aspect about the numbers is that its interest cost is down to just Rs.22,000 this Q3 compared to Rs.97 lakh in previous Q3. And typical of all PSUs, its employee cost remains a major contributor to expenses and here, it ate away 19% of the total income.

The company is touted to do well in the coming days, given the Govt’s drive for indigenisation in defence. And the current performance goes on to show that it does have the ability to execute and we could see more improvement in the numbers as orders get firmed. The Govt of India holds 75.01% stake and LIC holds 5.95%. Equity stands at Rs.80 crore (face value Rs.10) and reserves is at a healthy Rs.6937 crore.