i have BEL Shares 600 purchased @ 101/- should i hold

Ans: Hello Vasudev,

BEL has a strong business model and hold this company for long term with long term appreciation.

You can note following points:

1) Order inflow guidance intact.
2) Revenue growth likely to be boosted from new facilities.

Revenue growth for FY23 likely at 15% and 15-20% thereafter. Gross margin for FY23 is expected to remain at similar level to that in 9MFY23 i.e. at ~42%. Expect a turnover of Rs170bn in FY23.

Capex: To incur Rs6bn of capex in FY23 and Rs6bn-8bn in FY24.

Expect an order inflow of Rs155bn in Q4FY23 as discussions are almost concluded for Rs120bn worth of orders – while an additional Rs35bn is in various stages of approval. The inflow of Rs155bn assumes ordering of: 1)
Himshakti programme of Rs33bn, ii) Atulya medium-power radar of ~Rs20bn-30bn, iii) ~Rs100bn expected from naval shipyards for radars and SONAR.

New facilities to take care of growth: Company is pursuing new facilities at: 1) Nagpur, for ammunition at capex of Rs2bn; 2) Ibrahimpatnam, for land-based EW systems; 3) Nimmaluru, for advanced night vision equipment; 4) Hyderabad, for super components at an investment of Rs1bn; and 5) Anantapur, for manufacturing and integration of big systems for defence and paramilitary segments. These facilities will be commissioned in next 2-3 years.

Export orderbook is at Rs20bn.

Please hold this company for long term for decent wealth creation.

I hope this will help you. Happy Investing...

Disclaimer: This information is only for educational purpose and it should not be taken as buy or sell recommendation. I may or may not have any position in this business while answering this question.