BEL, Tata Electronics ink MoU to boost indigenous electronics, semiconductor ecosystem

Bharat Electronics Ltd (BEL) and Tata Electronics have inked a memorandum of understanding (MoU) to advance India's self-reliance in the electronics and semiconductor ecosystem. The partnership aligns with the government's vision for developing indigenous solutions and marks a significant step for both companies.

The MoU was officially signed on June 5 (Thursday) at the Tata Group's headquarters in Mumbai by BEL chairman Manoj Jain and Tata Electronics CEO Dr Randhir Thakur.

The collaboration between state-run BEL and Tata Electronics, a greenfield venture of the Tata Group, will focus on exploring opportunities in semiconductor fabrication, outsourced semiconductor assembly and test (OSAT) and design services.

Tata Electronics is set to offer solutions that will cater to the current and future requirements of BEL, including essential components such as Microcontrollers (MCUs), Systems-on-Chip (SoCs) and Monolithic Microwave Integrated Circuits (MMICs). Both entities aim to leverage their expertise for optimal manufacturing solutions.

This new collaboration is a strategic move towards ensuring self-sufficiency in India's electronics and semiconductor capabilities. By focusing on the development of indigenous technologies, BEL and Tata Electronics are poised to revolutionise the domestic market.

The partnership signals a commitment to fostering innovation and excellence in the industry, paving the way for enhanced economic growth and technological advancements.

The announcement came post market hours on Friday. BEL shares settled 0.76 per cent lower at Rs 390.70 earlier in the day. Technically, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 76.14. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-earnings (P/E) ratio of 57.54 against a price-to-book (P/B) value of 16.42. Earnings per share (EPS) stood at 6.79 with a return on equity (RoE) of 28.55. According to Trendlyne data, BEL has a one-year beta of 1.3, indicating high volatility.

As of March 2025, promoters held a 51.14 per cent stake in the state-run defence player.