Bharat Electronics Limited Case Study

The stocks chosen by me for this project are:
Bharat Electronics Limited (BEL) -
NSE: BEL - Sector : Electricals

State Bank Of India (SBI) -
NSE: SBIN - Sector : Banks-Public Sector

Trading day 1 - 18 Aug, 2017
Decision - Bought BEL - Rs.182.25, SBI - 278.50
Reasons for buying BEL stocks:
68.19% promoter holding by president of India as reported by the company on 31 march 2017.
BEL’s long term debt to equity ratio for the last 5 financial years has been 0 which means the company has been operating with 0 level debt.
BEL’s current ratio for the last five years has been 1.61 times which means they are generating sufficient cash to meet its commitments in the short run.
The company’s interest coverage ratio is 335.54 which means the company …show more content…
Trading day 2 - 22 Aug, 2017
Decision - Hold
Reasons for holding BEL stocks:
EBITDA margin at 9.5% in Q1 as they wont be able to recover the operating incomes in Q1 but as they approach Q4 the margins will pick up.
As MV.Gowthama CMD of BEL as said in an interview with CNBC BEL has received Rs.2500 crore worth orders in Q1. Also two major orders in the pipeline for seven squadrons of Akash and LR-SAM for the next series of ships. Expecting these orders to be materialized in FY18 itself.
Rs.16000 crore order inflow expected for FY18.
Positive to sustain growth rate of 15-17% and targeting revenue of Rs.10000 crore for FY18.
The CAG has audited BEL and has not written any observation against BEL in the past 8 years.
Started collaborative R&D programs with DRDO and working on medical electronics with GE which show a huge scope of growth.
Trading day 3 - 24 Aug, …show more content…
It seemed like a good idea to cash in on the dips right now.
Trading day 2 - 22 Aug, 2017
Decision - Hold
Reasons for holding SBI stocks:
Bought stocks with a long term view for the above reasons.
Observed fluctuation trend not more than -0.27% and increasing shareholders volume.
Trading day 3 - 24 Aug, 2017
Decision - Hold
Reasons for holding SBI stocks:
Working with a small number of stocks i.e 2 stocks. Hence not many funds blocked.
Bought stocks with a long term view for the above reasons.
Observed increase by 1.86% on 23 August.
Stock price reached Rs.280.30 on 24 August.
Increasing volume of share holders. Noticeable trend of increasing trust among shareholders.
Trading day 4 - 29 Aug, 2017
Decision - Hold
Reasons for holding SBI stocks:
Bought stocks with a long term view for the above reasons.
Observed downtrend not more than