Bharat Electronic hits a new high

Bharat Electronics is a Bangalore based PSU, under the Ministry of Defence. It provides all the specialized electronic needs of the Indian defence services. Currently, the Govt holds 74.41% stake in the company.

The stock price hit a new 52-week high today at Rs.1624.30; it has come off this high and is now at Rs.1615 level, up almost 5%.

The company has done well for Q3FY17. On a 33% (YoY) rise in net sales at Rs.2091 crore, it posted a similar 33% jump in net profit at Rs.373 crore. Thanks to the rise in topline, the company could show the increase in bottomline or else, given the increase in costs all across, it could have been a tough quarter.

The market is also enthused because it has declared the Govt stipulated minimum dividend of 30% (FV of Rs.10) and is also splitting the shares to Re.1 FV per share.