Why has Bharat Electronics been doing so well on the bourses in the recent past?

Bharat Electronics Ltd or BEL surged 5% to Rs259, an annual high on the stock. Its net profits spiked sharply to Rs432 crore in Q1FY23. Its order book stands at an impressive Rs55,333 crore, which is approximately 3.3 times its annual sales. EBITDA margins improved manifold to 16.5% on better fixed cost absorption. BEL stock performance has bene driven by robust order flows, healthy margins and model de-risking by diversification into non-defence areas.