Bharat Electronics can serve as a defence for your portfolio: Why it is stock pick of week
Re-rating possible as the company continues to do well despite Covid-induced disturbances.
Synopsis
Bharat Electronics’ diversification plans are gaining traction now and it has started witnessing increased contributions from non-defence sectors. Its reasonable valuation is another reason that has made the company a favourite of analysts.
The postponement of capital expenditures by private sector companies was one of the biggest casualties of Covid-19 induced disturbances. Most of the capital goods companies suffered because of the same. However, Bharat Electronics (BEL), a primary supplier of electronic equipment to Indian defence services and a beneficiary of government’s plan to increase indigenisation and reduce import dependency across the defence sector, was undeterred by