BEL to benefit from Defence patents - Do you have it in your portfolio?

Bharat Electrics Limited  is a company that deals with wide spectrum of products ranging from radars to solar based solutions. BEL is ranked among the top PSUs of the country with a track record of continuous profits year after year. 

Jefferies is an American Global Investment Banker, who is bullish on the counter and has kept the target for the stock at Rs. 1,600 per share.  The company explains that BEL's R&D expenses are proportionate to the sales, has a strong order book, indigenous technology and rise in patent filings and capex are all impressive.

While focusing on the operating leverage, scope for BEL and the governments favourable regulatory policy and Make in India initiative in defence, the institutional broker has maintained "buy" for the stock.

BEL has filed for 12 new patents and its R&D to sales is at all time high at 10 per cent. The capex for the company  aiming at improving the market share for the company augurs well for the stock. 

BEL touched an intra-day high at Rs. 1314 on Thursday and is now trading at Rs. 1297 per share. The 52 w low for the stock is at 974 and the 52 w high is at 1416. At Rs. 1297 per share the stock is trading above its 200-DMA indicating bullishness in the scrip. Over 1 year period the stock is up by almost 20 per cent and over 1 month the stock is up by almost 12 per cent.