The shares of defence electronics PSU Bharat Electronics hit an all-time high at Rs 282.8 per share, rallying 9.25 per cent on Tuesday morning.
The PSU, which manufactures electronic products, radars, missile systems, homeland security and civilian products, recorded strong results for the quarter ending March. Its profit after tax (PAT) leaped 30.6 per cent year-on-year to Rs 1,783 crore.
Over the past six trading days, the stock soared 26 per cent and the market valuation of the company touched the Rs 2 trillion mark on Tuesday.
The state-owned company saw its revenue was up Rs 8,564 crore, zooming 32.6 per cent YoY and 106 per cent QoQ. However, the EBITDA margin slumped 156 bps YoY.
According to Nomura India, the increase in other expense was offset by cut in employee cost.
"Increase in other income by 225 per cent YoY also led to the PAT beat of 17 per cent/ 21 per cent versus Nomura/ consensus estimates. Overall, we remain positive on BEL as we expect the secular growth to sustain, driven by its market dominance and increased project sizes, as it further ascends the value chain as a system integrator," the brokerage stated, suggesting a target price of Rs 300 for the stock.