BEL highlighted that the order inflows, excluding the Quick Reaction Surface-to-Air Missile (QRSAM) order, should be up to ₹27,000 crore in the new financial year. In case the QRSAM order materialises this year itself, that number could go up to ₹57,000 crore.
The management expects revenue growth of 15% this year, along with EBITDA margins of 27%.
Brokerage firm JPMorgan has an “overweight” rating on Bharat Electronics (BEL) with a price target of ₹445, which implies a potential upside of 22% from Tuesday’s closing levels. This is also the highest price target on the street for BEL.
JPMorgan said that the medium-term growth outlook for BEL has strengthened after the equipment and systems supplied by the company performed well during the recent India-Pakistan conflict.
The brokerage also said that BEL remains well positioned to ride the structural tailwinds of increasing domestic defence spend.
Morgan Stanley also retained its “overweight” recommendation on the stock with a revised price target of ₹418. It said that BEL remains a preferred pick for the brokerage for its execution track record, better control of supply chain in comparison to HAL, and a strong order pipeline.
In comparison to other capital goods peers, BEL has consistent earnings and Return on Equity (RoE), according to Morgan Stanley.
CLSA also raised its price target on BEL higher to ₹423 and maintained its “outperform” recommendation on the stock.
The key message from BEL during its earnings call was that the slowdown in its order inflows and backlog in the previous financial year, due to a high base, is over, CLSA wrote in its note.
BEL is set to win orders worth nearly $6 billion in the next 15 months and margins have set the stage for its Earnings Per Share (EPS) to increase by 8% to 11% over financial year 2026-2027.
Macquarie also has an “outperform” rating on BEL with a price target of ₹400.
While the QRSAM order has been pushed by a few quarters, the other potential fast-track orders provide the brokerage with enhanced near-term confidence. It also said that BEL’s margin guidance surprised positively.
Out of the 28 analysts that have coverage on Bharat Electronics, 24 of them have a “buy” rating, while two each have a “hold” and “sell” recommendation on the stock.
Shares of BEL ended little changed on Tuesday, having recovered from the lows of the day at ₹364.5. The stock has risen 21% in the last one month.
