"Defence PSU stock in focus: Navratna company BEL to consider cash reward on this date"
Will BEL’s cash reward set the stage for a strong 2024-25 financial year?
As India’s leading defence research, development, and production major, Bharat Electronics Limited (BEL) is all set to give investors a reason to cheer. The Navratna Central Public Sector Undertaking (PSU) is scheduled to consider an interim dividend for the financial year 2024-25 on March 5, 2025. The board of directors of the company is set to meet to deliberate on the distribution of profits to shareholders.
BEL’s dividend history
BEL has a reputation for being generous with its dividend payments. In the past, the company has announced a final dividend of Rs 0.80 for which the ex-date was August 14, 2025. Prior to this, it had announced two interim dividends of Rs 0.70 each. This is a clear indication that the company values its shareholders and is committed to sharing its profits equitably.
BEL’s share price performance
At the last trading session, BEL’s share price closed at Rs 256.40 on the Bombay Stock Exchange (BSE) with a marginal gain of 0.02% from the previous close of Rs 256.35. The scrip had touched an intra-day high of Rs 258.50 and an intra-day low of Rs 255.30 on Tuesday. The 52-week high and low of the company are Rs 340.35 and Rs 179.20, respectively. With a market capitalization of Rs 1,87,422 crore, BEL is one of the largest defence PSUs in the country.
BEL’s share price history
BEL has been a multibagger stock in the past, offering stunning returns to investors. In the two-year period, the stock has given a return of 168%, while in the three-year period, the return is a whopping 285.87%. In the one-year period, the stock has given a return of 24.77%. However, in the six-month period, the stock has given a negative return of 8%. Despite this, BEL’s performance has been impressive, making it an attractive option for investors seeking long-term gains.
BEL signs Rs 1,034 crore order
In a recent development, BEL has signed a contract with the Ministry of Defence for the supply of Software Defined Radios (SDRs) and Data Communication Terminals (DCTs) for the Indian Coast Guard. The state-of-the-art radios, indigenously developed jointly by Defence Electronics Applications Laboratory (DEAL) and BEL, support multi-band, multi-channel, multi-role/mission operations to meet the needs of Network Centric Warfare. This is a significant development that will further boost the company’s status as a leading defence major.
Will BEL’s cash reward set the stage for a strong 2024-25 financial year?
While it is difficult to predict with certainty, BEL’s track record suggests that the company is likely to continue its strong performance in the coming years. The company’s consistent dividend payments, impressive share price performance, and strategic contracts with the Ministry of Defence are all indicators of its growth prospects. As the company deliberates on an interim dividend for the financial year 2024-25, investors are eagerly awaiting the outcome, which may set the stage for a strong 2024-25 financial year. Will BEL’s cash reward be the catalyst for a strong 2024-25 financial year? Only time will tell.
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