BEL hits new high

PSU stock, Bharat Electronics Ltd (BEL) hit a new 52-week high today at Rs.3570 with good volumes. The stock has come off the high but remains firmly in the green, up over 7%.

The stock hit this new 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.

Performance apart, the counter is also buzzing post the Indo-US nuclear deal which is also expected to ring in more orders for the company in the coming few months.