Bharat Electronics drops in volatile trade after unveiling buyback plan

Bharat Electronics was down 0.5% to Rs 1,233.10 at 14:22 IST on BSE after the company's announcement that its board of directors will also consider a proposal of buyback of equity shares on 5 August 2016 when the board will consider Q1 results.

The announcement was made after market hours yesterday, 1 August 2016.

Meanwhile, the S&P BSE Sensex was down 33.63 points, or 0.12%, to 27,969.49.

Trading in the counter was volatile. The stock rose 1.67% at the day's high of Rs 1,260 so far during the day. The stock fell 0.58% at the day's low of Rs 1,232 so far during the day. The stock hit a record high of Rs 1,416.70 on 4 January 2016. The stock hit a 52-week low of Rs 983.36 on 25 August 2015. The stock had underperformed the market over the past one month till 1 August 2016, falling 2.49% compared with 3.16% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 4.78% as against Sensex's 9.36% rise.

On BSE, so far 25,000 shares were traded in the counter, compared with an average daily volume of 31,857 shares in the past one quarter.

The large-cap state-run company has an equity capital of Rs 240 crore. Face value per share is Rs 10.

Net profit of Bharat Electronics rose 9.91% to Rs 794.50 crore on 10.74% rise in net sales to Rs 3135.42 crore in Q4 March 2016 over Q4 March 2015.

Bharat Electronics was established at Bangalore, India, by the Government of India under the Ministry of Defence in 1954 to meet the specialised electronic needs of the Indian defence services. Over the years, it has grown into a multi-product, multi-technology, multi-unit company servicing the needs of customers in diverse fields in India and abroad.

The Government of India currently holds 75.02% stake in Bharat Electronics (as per the shareholding pattern as on 30 June 2016).

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