When you are in the stock market, you should be thoughtful about every single thing. you cannot simply invest and later frown. Now, talking about Bharat Electronics Limited (BEL), you can consider investing in it. You can check bel share price and go for it.
Well, it is a leading Indian public sector company that designs, even manufactures, and supplies advanced electronic products for defence, aerospace, and even other sort of sectors. It is a government-owned company and is believed to be one of Navratna companies of India, which are huge public sector enterprises that work as independent profit-making entities. This post is going to give you reasons to invest in BEL or Bharat Electronics Limited company.
BEL has a firm financial position and that is an important consideration for any potential investor. The company has a powerful balance sheet with a high current ratio of two point eleven, showcasing that it has enough current assets to cover its overall present liabilities. Additionally, the company has even a low debt-to-equity ratio of zero point sixteen and it denotes that it has a low degree of debt relative to its equity. This proposes that the company has a healthy degree of financial leverage and is less dangerous than companies having higher debt levels.
BEL has even been consistently producing profits, with a net profit margin of nearly seventeen-point two percent in the financial year 2020-21. The company’s revenue has been extensively growing over the years, with a revenue development rate of 5.6% in the financial year 2020-21. Clearly, this strong financial position of BEL is evidence of its sound management and even capability to generate profits even in challenging market situations.
Expanded Customer Base
BEL serves a varied range of customers, including the Indian defence forces, paramilitary organisations, and even other sort of government agencies. This sort of diversification helps to alleviate the risks associated with dependence on a single kind of customer. The major customers of this company include the Indian Army, Indian Air Force, Indian Navy, and the Ministry of Defence.
The company has also been stretching its customer base to encompass international customers. The company has exported its products to more than 50 countries, including the United States, France, Germany, and the United Kingdom. This sort of diversification of its customer base is a critical factor in the company’s success and aids in reducing its dependency on the Indian government.
The defence budget of India has been increasing over the years, and BEL is definitely well-positioned to take advantage of this trend. The Indian government has set a target of somewhat accomplishing self-reliance in defence production, and BEL is definitely playing a main role in this initiative. The company has been extensively investing in building new manufacturing facilities and has even been expanding its product portfolio to cater to the altering needs of the defence sector.
Similarly, BEL has been stretching its business in new areas such as avionics, civilian radars, and electronic warfare systems. The company has a robust research and development team that is concentrated on developing new products and technologies to fulfil the needs of its customers. Such growth opportunities promise a solid foundation for the future growth and success of this company.
So, since you know now Bharat Electronics Limited (BEL) has much to offer you, you can consider investing in its stocks. Remember whether BEL or Mazagon dock share price or any other option; it depends on your priorities to make a move.