JPMorgan has a price target of ₹343 on Bharat Electronics, which implies a potential upside of 26% from current levels. The price target also implies that BEL has the potential to retest its recent peak of ₹340 from where it has corrected.
The brokerage wrote in its note that a 20% correction from the peak, presents a good entry opportunity in the Navratna PSU due to the structural growth in defence capex in India. BEL is the most diversified and consistent play on this theme, according to JPMorgan.
BEL’s revenue, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and Profit After Tax (PAT), is likely to grow at a Compounded Annual Growth Rate (CAGR) of 15%, 17% and 16% respectively along with an average Return on Equity (RoE) of over 25% over financial year 2024-2027, according to JPMorgan, who called these estimates “compelling.”
The stock is also now trading at a financial year 2026 and 2027 price-to-earnings multiple of 36 times and 31 times respectively, which is down from the peak one-year forward price-to-earnings multiple of 52 times.
Bharat Electronics on Thursday announced new orders worth ₹577 crore, taking the total order inflow for financial year 2025 to over ₹13,000 crore. However, the figure is still well below the company’s guidance for financial year 2025 of ₹25,000 crore.
JPMorgan though believes that there is a high possibility of the company announcing order wins worth over ₹12,000 crore by March 31, which is just three weeks from now, and that, according to the brokerage, will act as a near-term catalyst for the stock price.
Out of the 26 analysts that have coverage on Bharat Electronics, 23 of them have a “buy” rating on the stock, one has a “hold” rating, while two others have a “sell” recommendation.
Shares of Bharat Electronics ended 0.9% lower on Thursday at ₹272.5. The stock has declined 8% so far in 2025.
