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Bharat Electronics stock attractive after stake sale by Norges Bank

The strong order book, and the likelihood of better margins -- as the supply chain untangles and raw material costs decline -- are good reasons to back BEL in the long term

Non-defence project scale-up could drive more gains for Bharat Electronics
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Devangshu Datta
PSU Bharat Electronics (BEL) has seen a sharp decline in its share value in the past few sessions. While lower than estimated profitability in the October-December quarter of the 2022-23 financial year (Q3FY23) may have disappointed investors, the key trigger was the decision by Norway’s sovereign fund, Norges Bank, to divest holdings in BEL on geopolitical grounds.

BEL’s decision to sell a remote-controlled weapons station to the Myanmar government in 2021 was unacceptable to the Norwegian government since Myanmar uses weapons “in ways that constitute serious and systematic violations of international humanitarian law” according to the fund’s statement.

BEL derives

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First Published: Jan 30 2023 | 8:41 PM IST

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