- 16 Nov 2022
- ICICIdirect Research
BHARAT ELECTRONICS SIGNS MULTIPLE MOUS TO EXPAND PRODUCT CAPABILITIES
BEL - 315 Change: 0.85 (0.27 %)News:
BEL has signed MoUs with four companies like Hindustan Shipyard (HSL), Yantra India (YIL), Profense LLC US and SVC Tech Ventures (STV). With HSL, the MoU is to carry out joint development, manufacturing and product upgrades of identified products/systems and to capitalise on emerging opportunities in the domestic defence, non-defence and export markets. With YIL, the MoU is for cooperation in areas of ammunition hardware and military grade components to jointly address the requirements of Indian Defence and export markets. The MoU with STV is for cooperation in the manufacturing and marketing of heavy duty blast doors. The MoU signed with Profense is for cooperation in the manufacturing and marketing of light weapons
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BEL has been focussing on expanding its capabilities in other product categories including ammunitions & light weapons in defence segment. We believe that with these MoUs, BEL will be able to expand its product portfolio which is largely into defence electronics at present. Moreover, with this, the company may also look for increasing its revenue share from non-defence segments and exports. The order book position of the company stood at Rs 52,795 crore as of Sep-22 end (~3.1x TTM revenues). Orders inflow during FY23 is expected at ~Rs 20,000 crore. Moreover, order inflows for the next three to four years are expected at Rs 20000 each year which would include from both defence and non-defence segments
Impact:
Positive