Shares of Bharat Electronics Ltd have gained over 15 per cent so far in March. On March 10 the stock gained over 2 per cent to trade at an intraday high of Rs 283.47 apiece on the NSE. At the day high level, the stock has gained 15.14 per cent so far in March.
Several factors have contributed to an increase in the share price of the public sector defence player. The stock has also managed to extend gains for the second straight session on March 10, gaining nearly 4 per cent in two sessions. Here’s a look at some factors which have contributed to the stock’s rise in March:
German Rearmament
Earlier on March 4 the European Commission announced its proposal to borrow as much as €150 billion (approximately $157.76 billion). The commission plans to lend the money to European Union governments for setting up a fund for creating a ‘rearmament plan’ amid rising geopolitical uncertainties due to the ongoing war between Russia and Ukraine. Additionally, the commission is also considering the possibility of the US discontinuing protection to Europe. Bharat Electronics is likely to have gained following the announcement as uncertainty over US defence policy continued.
Rising Order Book
The state-owned defence sector player informed the exchanges on March 6 that it has secured additional orders. The PSU stated that it has received orders worth Rs. 577 crore in the period after February 20 and before March 6. The company stated that the orders it has received are for airborne electronic warfare products, advanced composite f communication systems for submarines, doppler weather radar, train communication system, radar upgradation, spares, services etc. The company added that with the receipt of additional orders the company has received total accumulated orders of Rs.13,724 crore so far in FY 2025-26.
BEL Dividend Ex-Date
The state-owned defence sector player informed the exchanges on March 5 that it has declared an interim dividend of Rs 1.5 per equity share of a face value of Rs 1 each for the financial year 2025. The company added that it has fixed March 11 as the record date for the dividend payout. Notably the dividend will be credited in the shareholder’s accounts on or before April 5. The company will pay a total of Rs 1,096 crore as an interim dividend, including Rs 560.7 crore to the government.
March 10 is the last date on which investors can buy shares of BEL to be eligible for receiving interim dividends before the stock trades ex-date. Holding a company’s stock on the record date makes investors eligible to receive dividends. In the T+1 settlement cycle, investors who purchase shares on the record date itself are not considered eligible to receive dividends. Thus only investors who own shares of BEL as of March 10 will be eligible to receive dividends. The incentive to buy the share to receive dividends is also likely to have contributed to the stock’s gaining spree.
In a year shares of BEL have gained over 31 per cent on the NSE. The stock has slipped 5.45 per cent Year-to-Date. In six months the company has fallen over 3 per cent and in a month the stock has fallen more than 1 per cent.
