Defence stock in which Govt. of Singapore bought fresh stake worth ₹3,000 Cr

Synopsis: Bharat Electronics comes into focus as the Government of Singapore invests Rs. 3,040 crore for a 1% stake. 

This company manufactures and supplies electronic equipment and systems to the defence sector and also has a limited presence in the civilian market is now in the spotlight after the Government of Singapore made a fresh investment in it.

With a market capitalisation of Rs. 3,03,026 cr, the shares of Bharat Electronics Ltd are currently trading at Rs. 414 per share, up from its previous close of Rs. 409.90 per share. The stock has delivered 58% returns over the past year, 6.5% in the last six months, and 5% in the past month.

The Government of Singapore publicly holds 50 stocks with a net worth of over Rs. 184,636.6 cr. The Government of Singapore’s top holdings by investment value include HDFC Bank (Rs. 27,690 crore), ICICI Bank (Rs. 15,885 crore), Bharti Airtel (Rs. 14,720 crore), Bajaj Finance (Rs. 12,390 crore), and Larsen & Toubro (Rs. 10,365 crore).

Fresh Stake News

The Government of Singapore has made a fresh investment of Rs. 3,040 crore in Bharat Electronics, acquiring 1% of the company’s equity as of Q3 FY26. This strategic investment reflects growing confidence in Bharat Electronics’ strong fundamentals, robust order pipeline, and long-term growth potential in the defence and electronics sectors.

About the company 

Bharat Electronics Limited (BEL) is a Navratna PSU under the Ministry of Defence, Government of India. It manufactures state-of-the-art electronic products and systems for the Army, Navy and Air Force. 

BEL has also diversified into various areas like homeland security solutions, smart cities, e-governance solutions, space electronics including satellite integration, energy storage products including e-vehicle charging stations, solar, network & cyber security, railways & metro solutions, airport solutions, Electronic Voting Machines, telecom products, passive night vision devices, medical electronics, composites and software solutions.

The company demonstrates strong financials with a ROCE of 38.9% and ROE of 29.2%, compared to an industry P/E of 53.8 and a stock P/E of 53.1. Nearly debt-free, it has delivered 23.8% CAGR profit growth over the last 5 years and maintains a healthy 3-year ROE of 26.4%. The company also sustains a robust dividend payout of 39.1%.

As of Q3FY26, Promoter shareholding stands at 51.14%. FII’s increased their stake from 18.14% in Q2FY26 to 18.51% in Q3FY26. DII’s reduced to 20.47% from 20.88%. Public holding also rose from 9.84% to 9.87% over the same period.

According to the latest transcript, the company’s order book was Rs. 74,453 crore as of October 1, 2025, and has since grown to over Rs. 75,600 crore. Likewise, orders secured in FY26 rose from Rs. 12,539 crore on October 1 to Rs. 14,750 crore, reflecting continued strong order inflow momentum.

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