If only order flows mattered, stocks of Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL) would have been hot favourites on the Street.
But investors also need to contend with the niggling issue of payment delays from the government. This has taken the sheen off the BEL and HAL stocks.
Nevertheless, the current downturn brings the companies’ competitive advantages to the fore, which is a sturdy order book, resulting in steady revenues.
Revenues of the two companies grew 6% and 7%, respectively, in FY20, according to provisional numbers released by them. BEL’s growth pales in comparison to the 16% increase in revenue in FY19.
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