Bharat Electroonics gained 1.25% to Rs 1,231.50 at 14:45 ISTon BSEafter the company said it is setting up advanced night vision products factory at Nimmaluru village, near Machilipatnam in Krishna district of Andhra Pradesh.
Meanwhile, the S&P BSE Sensex was up 86.07 points or 0.3% at 28,685.10.
More than usual volumes were witnessed on the counter. On BSE, so far 42,411 shares were traded in the counter as against average daily volume of 26,261 shares in the past one quarter. The stock hit a high of Rs 1,237.50 and a low of Rs 1,220 so far during the day.
The stock had hit a record high of Rs 1,416.70 on 4 January 2016. The stock had hit a 52-week low of Rs 1,009 on 1 March 2016. The stock had underperformed the market over the past one month till 16 September 2016, falling 1.63% compared with Sensex’s 1.9% rise. The scrip had also underperformed the market in past one quarter, dropping 4.15% as against Sensex’s 7.82% rise.
The large-cap company has equity capital of Rs 240 crore. Face value per share is Rs 10.
Bharat Electronics said that it will be the largest such factory in the country once it is commissioned, covering an area of over 50 acres. In order to support Government of India initiatives such as Make in India, the company is extending its support to start up companies and medium and small manufacturing enterprises (MSMEs) through procurement of specific items from them.
The factory will enable the company to expand its Electro-Optics business and carry out manufacturing and integration for the ongoing and upcoming projects. The factory will be built in stages and the estimated investment will be about Rs 300 crore over 4 year period.
As part of diversification and business growth, the company is looking for major expansion into high end image intensifier tubes and thermal imaging detectors for night vision products, inertial navigation systems, electronic ammunition fuses, air traffic management radars, intelligent traffic management systems and solar power plants.
Bharat Electronics’ net profit fell 52.9% to Rs 36.09 crore on 20.9% decline in net sales to Rs 846.73 crore in Q1 June 2016 over Q1 June 2015.
Bharat Electronics was established at Bangalore, India, by the Government of India under the Ministry of Defence in 1954 to meet the specialised electronic needs of the Indian defence services. Over the years, it has grown into a multi-product, multi-technology, multi-unit company servicing the needs of customers in diverse fields in India and abroad.
The Government of India currently holds 75.02% stake in Bharat Electronics (as per the shareholding pattern as on 30 June 2016).
By EB Bureau
