During the June quarter, retail investors increased their holdings in PSU stocks while mutual funds and FIIs reduced theirs. Stocks like Bharat Electronics Ltd, HAL, and RITES saw higher retail ownership. Analysts noted potential overvaluation in some sectors but highlighted the overall reasonable valuation of PSUs, driven by strong earnings growth and government reforms.

PSU stocks: Retail rebels rule as FIIs, MFs retreat in June quarter

BEL share price: On the earnings front, the defence PSU reported a 46.17 per cent a year-on-year (YoY) rise in its net profit at Rs 776.14 crore for the quarter ended on June 30, 2024 (Q1 FY25).

Bharat Electronics shares slip 7% from record high levels; here’s what analysts say

Tata Group’s Trent and Bharat Electronics were poised to join the Nifty 50 index during the September reshuffle, as predicted by IDBI Capital. Trent’s shares increased 84% and Bharat Electronics rose 68% this year. LTI Mindtree and Divi’s Laboratories were likely to be excluded. The index review is based on semi-annual market data, effective from September 30.

Trent and BEL could join Nifty in September rejig; LTIM, Divi’s Likely to exit

Bharat Electronics (BEL) exceeds expectations with strong revenue growth, robust order pipeline, and focus on diversification and modernization.

Broker’s call: Bharat Electronics (Buy)

Bharat Electronics reported a strong set of numbers in Q1FY25 but the brokerage firms have a mixed view on the PSU counter as they see up to 38 per cent fall in the stock.

Bharat Electronics shares may see up to 38% fall: Here’s what brokerage say on multibagger PSU stock

Based on the present plan, the heart of the submarine, which is the combat system will be an indigenous one from Bharat Electronics Limited based on French architecture

Navy’s new Scorpene subs to have made in India ‘heart’: French Naval Group

UBS downgraded the stock’s rating from ‘buy’ to ‘neutral’ and raised the target price to Rs 340 apiece.

Bharat Electronics Fundamentally Strong But All Positives Priced In, Say Analysts

Its revenue rose 19.6% to Rs 4,199 crore in the April-June period, as against Rs 3,511 crore over the same period last year.

Bharat Electronics Q1 Results: Profit Surges 46.2%, Beats Estimates

Shares of Bharat Electronics rose more than 5 per cent to Rs 325.65 during the trading session on Monday, commanding a total market capitalization of more than Rs 2.40 lakh crore.

Bharat Electronics shares rally 5% on solid Q1 results: key details

BEL Q1 Results 2024: Bharat Electronics (BEL) posted a 46% year-over-year increase in Q1 2024 standalone net profit, reaching Rs 776.14 crore. Revenue climbed 19.6% year-over-year to Rs 4,198.77 crore. However, quarterly net profit and revenue dropped significantly. Shares rose 5% post-results. BEL secured major contracts, including one with Armoured Vehicles Nigam Limited, boosting its order book.

BEL Q1 results: Standalone PAT jumps 46% YoY to Rs 776 crore, revenue rises 20%

Bharat Electronics consolidated net profit rises 46.89% in the June 2024 quarter

Price return has been average, nothing exciting

Performance

Seems to be overvalued vs the market average

Valuation

Lagging behind the market in financials growth

Growth

Showing good signs of profitability & efficiency

Profitability

The stock is overpriced but is not in the overbought zone

Current price is more than the intrinsic value

Fundamentals

Good time to consider, stock is not in the overbought zone

Technicals

Entry point

Promoter pledged holding

Unsolicited messages

Default probability

Red flags

Bharat Electronics Limited is engaged in design, manufacture and supply of electronics products/systems for defense as well as for nondefense markets. The Company's principal products include weapon systems, radar and fire control systems etc.