Turnaround in Bharat Electronics stock may lack firepower to sustain

A sizeable order book position notwithstanding, Bharat Electronics Ltd’s stock did not quite deliver returns to shareholders for about two years. Its stock price has halved from about ₹160 two years ago. But over the past month, shareholders have been sitting on gains of about 9% as investors are seemingly looking at the beaten-down stock price. Shares continue to tick higher with gains of about 1% today.

Sure enough, signs of a slow recovery are visible. BEL’s order book has been getting a boost from government initiatives such as the Akash Missile program. The present order book has increased by 43% to ₹57,600 crore. Also, it is expected to bag orders of about ₹13,000-15,000 crore this year.