Navratna PSU Bharat Electronics Limited (BEL) is a significant participant in the Digital India campaign. BEL is one of the high-potential growth stocks because of its competitive advantage in the military and civilian industries, strong order book, diverse product portfolio, and strong R&D competence.
BEL stocks have performed well in the past few years and have been rated as a buy by many financial advisories and investors. Through this article, join us as we unravel the intricate layers of BEL’s role in Digital India.
Also, on our journey, we will understand what enhances the growth potential of BEL stocks, exploring how this technological maestro is not just adapting to change but composing a melody of progress that resonates across the nation’s digital landscape.
BEL’s contribution to digital infrastructure
Digital infrastructure is the backbone of any modern nation, consisting of various components, such as optical fiber networks, satellite communication systems, cyber security systems, data centers, cloud computing, etc.
BEL manufactures state-of-the-art electronic products and systems for the Army, Navy, and Air Force and various civilian sectors, such as homeland security, smart cities, e-governance, space electronics, etc.
BEL has partnered with global IT firms, such as Cisco, to scale up its networking, collaboration, and security services, among other associated services.
BEL is a high-potential growth stock for its unparalleled contribution to digital infrastructure, strengthening the nation’s development and security while creating new opportunities and markets for its products and solutions.
BEL’s contribution to digital services
Some of the digital services that make BEL stock amongst the high-growth potential stocks are:
E-governance: BEL provides various solutions and products for e-governance, such as Electronic Voting Machines (EVMs), Voter Verifiable Paper Audit Trail (VVPAT), Aadhaar enrolment and authentication devices, biometric identification systems, digital certificates, and various types of documents, such as land records, pension records, etc.
E-health: BEL has developed and implemented the e-Sanjeevani, a web-based comprehensive telemedicine solution connecting patients and doctors across the country.
E-education: BEL provides various solutions and products for e-education, such as smart classrooms, digital boards, interactive whiteboards, tablets, laptops, etc.
BEL’s contribution to digital literacy is through participation in flagship programs like the National Digital Literacy Mission (NDLM), New India Literacy Program (NILP), etc., bridging the digital divide in the country.
E-agriculture: BEL provides various solutions and products for e-agriculture, such as soil testing kits, weather stations, irrigation controllers, crop monitoring systems, etc.
BEL has also developed and implemented the Kisan Call Centre (KCC), a toll-free helpline service providing information and guidance to farmers on various aspects of agriculture and allied sectors.
BEL’s inclusion in the list of high-growth potential stocks is primarily due to its commitment to digital services.
BEL’s growth potential and stock performance:
BEL stock performance has been impressive in the past few years, as it has delivered consistent growth in revenue and profit and has rewarded its shareholders with regular dividends and bonus issues.
Some of the highlights of BEL stocks are as follows-
- BEL’s stock price has increased by 60.52% from its 52-week low of Rs. 87 to its current price of Rs. 139.35 as of November 24, 2023.
Source: Bharat Electronics Share Price – Bharat Electronics Share Price Live NSE/BSE (indiatimes.com)
- Over the past year, BEL’s stock has also outperformed the Nifty 50 index, which has gained 8.4% in the same period.
- The P/E ratio of BEL stocks compared to its peers is 31.63. BEL stocks are undervalued compared to their peers, with an average P/E ratio of 42.4.
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- BEL stock’s price-to-book (PB) value ratio is 7.35 compared to the industry average of 7.3x. It indicates that BEL’s stock trades at a reasonable price relative to its assets.
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Source: Bharat Electronics (NSEI: BEL) Stock Valuation, Peer Comparison & Price Targets – Simply Wall St
- BEL stock also has a low beta of 0.14, meaning it is less volatile than the market. This reduces the risk of investing in BEL’s stock, especially in uncertain times.
- BEL stock also has a decent dividend yield of 1.26%, which provides a steady income to the investors.
- BEL’s stock has a positive outlook for the future, as it has a strong order book of Rs. 53,000 crore, which provides revenue visibility for the next few years.
The Bottom Line
BEL is a high-potential growth stock, as it has a strong business performance, a low valuation, a low risk, and a positive outlook, and it creates value for its stakeholders and customers.
In the big story of how India is becoming a digital pro, BEL is the friendly guide, ensuring everyone can join the digital adventure. They connect people, keep things safe, and even talk to the stars. BEL is like a digital superhero, ensuring India’s digital future is bright and excellent for everyone.
Therefore, BEL stock is a good investment option for long-term investors looking for growth and stability. We hope this article has given you some insights into the potential and prospects of BEL.