Bharat Electronics to gain from strong order book and new opportunities

Semiconductor shortage and execution delays, however, dented its FY22 performance

The provisional March quarter (Q4) and financial year 2021-22 (FY22) sales of defence electronics major Bharat Electronics (BEL) were marginally lower than estimates. Yet, the company’s share price has gained over 13 per cent in the seven sessions (including 6.55 per cent on Thursday). Recent order wins and the prospect of a significant growth opportunity opening up has boosted sentiment. 

Thursday’s gains follow reports that the defence ministry will unveil a third list of over 100 military systems and weapons, which will see import restrictions. The move is towards a push towards defence equipment indigenisation, and in continuity with two lists