Growth trajectory remains strong for defence major Bharat Electronics

Healthy order book, tender pipeline and margin improvement are positives

The stock of defence major Bharat Electronics (BEL) was up 3.7 per cent on Monday and hit a fresh 52-week high. The gains came after a strong June quarter or the first quarter of 2022-23 financial year (Q1FY23) performance and expectations of a robust growth trajectory going ahead. In addition to revenue visibility in core defence business, scaling up of new segments and margin expansion are key positives.

On a favourable base and amid multiple headwinds, BEL delivered a 96 per cent year-on-year (YoY) growth in sales in Q1FY23 to Rs 3,063 crore. This was better than Street estimates which