Bharat Electronics jumps after brokerage initiates coverage

Bharat Electronics rose 3.90% to Rs 2,127.30 at 11:57 IST on BSE after a domestic brokerage firm initiated 'buy' rating on the stock.

Meanwhile, the BSE Sensex was down 86.33 points, or 0.32%, to 26,971.08.

On BSE, so far 27,000 shares were traded in the counter, compared with an average volume of 25,814 shares in the past one quarter.

The stock hit a high of Rs 2,152.60 and a low of Rs 2,047 so far during the day. The stock hit a record high of Rs 2,320 on 7 July 2014. The stock hit a 52-week low of Rs 895 on 4 February 2014.

The stock had outperformed the market over the past one month till 10 September 2014, rising 14.21% compared with 6.82% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 10.90% as against Sensex's 5.76% rise.

The large-cap company has an equity capital of Rs 80 crore. Face value per share is Rs 10.

The brokerage said Bharat Electronics will be 'key beneficiary' of rising defence spending in India.

Indian Air Force is finalising acquisitions of $20-22 billion. Air Force acquisitions will benefit Bharat Electronics, the brokerage added.

The government on 26 August 2014, notified increase in foreign direct investment (FDI) limit to 49% through approval route in the defence sector.

Net profit of Bharat Electronics rose 48.98% to Rs 25.61 crore on 12.67% rise in net sales to Rs 996.71 crore in Q1 June 2014 over Q1 June 2013.

Bharat Electronics meets the specialised electronic needs of the Indian defence services. BEL is among an elite group of public sector undertakings which have been conferred the Navratna status by the Government of India.

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