Value-Buying Props Bel

The share price of Bharat Electronics Ltd (BEL) rose on the Bombay Stock Exchange (BSE) on value-buying.

The stock of the defence equipment maker closed 4.07 per cent higher at Rs 212 after hitting an intra-day high of Rs 218.80. Around 7.56 lakh shares changed hands on the BSE and 15.42 lakh shares on the National Stock Exchange.

BEL has been witnessing a rise in its stock price on hopes over the company's first quarter results announcement on July 23, 2002. The stock rose 17.3 per cent in four trading sessions, from Rs 183.85 on July 17, 2002, to Rs 215.80 on July 23. The scrip fell 5.6 per cent on July 24 to Rs 203.70.

BEL posted a 76 per cent rise in sales at Rs 288.6 crore on the back of an order book position of Rs 4,000 crore as on March 31, 2002. Profit after tax surged 89 per cent to Rs 25.46 crore.

For fiscal 2001-02, BEL had clocked a 13 per cent growth in sales at Rs 1,941.99 crore and a 29 per cent growth in net profit at Rs 199.68 crore.

The Rs 4,000 crore order book position was 34 per cent higher against Rs 2,995 crore as on March 31, 2001, and 40 per cent higher than Rs 2,850 crore on September 30, 2001.

The government's emphasis on defence expenditure in the wake of the tension between India and Pakistan has boosted the company's order book.

The government is BEL's biggest customer. The company designs, develops and manufactures products in the field of radar, defence communications, telecommunications, sound and vision broadcasting, opto-electronics, solar systems, IT products and electronic components.

It has the expertise in engineering radar, telecom and satcom networks, providing network solutions to meet customer needs.

These systems are supplied and commissioned on a turnkey basis. During the year ended March 31, 2002, BEL earned the distinction of becoming the first defense public sector unit to acquire operational status of 'Mini ratna category-I'.