Bharat Electronics (BEL): Consistent Performer with Strong Order Momentum:-
Some important companies and some important updates related to them The name of the first company is Bharat Electronics LED. Disclaimer that all the news and updates related to all the companies that we will cover are only for educational purposes and for learning. Do not consider this as any kind of investment advice. You can also do your own research and analysis.About some important updates related to Bharat Electronics. About the defense sector, there are many defense companies which have been seen reporting good growth in their revenue and profit in the last few times. But when we talk about consistency, we find the consistency of Bharat Electronics to be much better. If we compare this with other defense companies. If you look at the CAGR of the company ‘s revenue and profit over the last 10 years, you will see both in double digits. We have seen better profit growth in comparison to revenue. If you look at the CAGR of the last 5 years, the revenue has grown at 13% CAGR and the profit has grown at 24% CAGR. And the same scenarios are being repeated in the last 3 years also.
Growth Highlight:-
About the last one year, here also we are seeing the growth rate in double digits. We have seen the growth rate of profit to be double in comparison to revenue. Now see friends, the growth that a company reports in the last 10 years or 15 years, after that repeating this growth becomes very complicated or we can say it becomes difficult for the company. Now, at such a time, if the company is continuously gaining orders, then this entire growth rate can be reported by the company in the future as well and orders are the most important thing. And at present, if we talk about this company, we are hearing news of orders only. Recently the company has received a new order worth Rs 528 crore. Due to which you could see this company in focus today also. And forget about today’s news, even if it is removed.About the coming tomorrow, we may also get to see news of big orders related to the company in the coming tomorrow. And if the news of that order comes from India then it is a good thing. We won’t find anything surprising in that at all.
But if you get more orders from outside India then don’t be surprised at all. Because due to India Pakistan war, our defence sector allocation may see a massive push in the next budget and NATO members have also agreed that they are going to increase the share of their GDP in defence sector spending that they used to give earlier. So because of this many companies like masc bdl hl broniced all these companies can gain good orders from outside India also. So if seen from the business point of view, we have seen good news related to the defense sector in the recent times. Which will ultimately be a good thing for all those companies which have shown good numbers in the past. Financially the company seems stable. But yes, do not consider all these things as any kind of recommendation.
Cochin Shipyard: ₹250 Crore Order for Two Tugboats:-
So the next company is Coaching Shaya. So friends, if we talk about some important updates related to this company, then today we were getting to see an important news related to this company. Due to which you could see this company also in focus today. Now friends, we can say that the news related to this company is related to business because we are getting to see the news of the order. The company has received an order worth Rs 250 crore on the basis of which it will construct two trucks. Now look, whatever orders Coaching Shipyard gets, whatever work it does, it is obvious that it will be used in the sea only. Now, what is the use of this Tux contract that this company has received, or you can say what is called Tux, let me explain that as well. Now this stuff that we are talking about could be anything. It might be defense equipment. There are many vehicles, aircrafts and many other things which are important in the defense sector. All these things may be transported from land to sea or from sea to land. So we can say that TUX is a type of ship that works to deliver goods from one place to another in the sea. Now this company has got the contract for the same and how many trucks does the company have to construct? So two tuxes. So obviously if we see the news then we can consider it good.
About the current order book of the company, then the company has an order book of around Rs 22,500 crore till the end of the financial year 2025. According to phenology, this order book can give revenue to the company for the next 5 years. Because if we talk about the full year revenue of the company, then in the financial year 2025, the company had reported a revenue of 4500 crores and if you look at it, we are getting to see the orders of the company many times. 22500 crores which can easily be talked about as revenue. We are definitely going to see it four times. So overall this is a good thing. If we look from the business point of view of coaching ship, the company has a good order book and new orders are being added to it on a regular basis.
Polycab India: Market Leader Under Threat?:-
Which is ultimately a good news for the company’s business. But yes, after all these things, you should also do your own research and analysis. About the next company whose name is Polyked. So the biggest news was related to race. Race for what? The race is on to maintain a major position in the Cables & Wires sector. The largest position in the Cables & Wires sector at present is held by Polycab India. We constantly see competition from Havells India. But in the coming future, we will also get to see many new players in which one big name will be of Ultratech and another big name will be of Adani. Now, look friends, you all know that Asian Paints which is a joint company of the paints sector, used to have a very good market share and even now, if we see in fact, but even it has been troubled by Birla Opposs which is a company of Aitya Birla Group, you can say that the parent company of Birla Ops is Grasim Industries and Grasim Industries belongs to Aitya Birla Group and UltraTech is also the same, so in some way Aitya Birla Group is also like Reliance Industries that if it enters the market, then the old players of that market do not allow it to do business easily.
Polycab Faces Potential Downgrade from Large Cap to Mid Cap:-
So we have seen that the growth rate of Asian Paints has been slowing down significantly in terms of profit and if you look at it in terms of revenue, the same thing has been repeated. So because of this, whatever will be the numbers of PLCP India in the coming years, if we talk about one and a half years, then there will be no problem due to competition. But after a year, when UltraTech’s presence will be complete and they will launch the brand, then it will be very interesting to see what kind of numbers Polyc India will report. So pay attention to this thing, if you are an investor of Polycab India, then friends, some more news related to Polycab India can be seen in future, which can be said to be slightly negative because at the present time, the market cap of this company is more than ₹ 100000 crores and mainly if any company has a market cap of around 75000 80 crores, then that company is considered in the large cap category and at the present time Polycab India is in the large cap category, but some reports here are saying that in the coming future we will get to see the reef shuffling of AMFI. There are some companies in it which can be shifted from large cap to mid cap categories. Now the name of RBNL is seen in it. The names of Hero Motorcd, Overseas Bank Comms India, SWGI Polcab India, BS Dabar India and NTPC Green Energy are also being seen. And who is saying all this brother? So Novama is speaking.
Final Thoughts: Stay Informed, Stay Objective:-
Novama’s research reports are speaking. Now look, if any company is coming in large cap to mid cap then it means that the inflow of mutual funds in that company may be a little slow. So you can note down all these things. If you are a shareholder of any of these companies. Currently, if about Polycab, then Polycab investors should keep this thing in mind. But yes, on the basis of all these things the business does not get spoiled. We can say that in terms of volumes, when we talk about volumes , the volumes may be slightly lower than before because the big institutions may have less presence than before in all these companies. But it is not like you will make your presence disappear completely. Don’t think like that. Ok? About the next company which has recently announced bonus in the ratio of 1:1 and split in the ratio of 1:5 and the company has fixed its record date ex-date on 4th July. So if you are a shareholder of this company then you can definitely take note of this news. is not a shareholder.