Jefferies has a price target of ₹325 per share on BEL, which implies a potential upside of 17% from the current levels. BEL shares have corrected 18% its recent peak of ₹340.50.
BEL announced ₹580 crore order flow and needs another ₹11,300 crore in Mar-Apr 2025 to meet its FY25 estimated guidance of ₹
25,000 crore.
In the financial year 2023, BEL announced 83% of its order flow in March 2023 and met annual guidance of ₹20,000 crore.
This drove stock up 12-17% in next 1-2 months.
The management in its third quarter earnings call reiterated meeting its FY25 guidance which combined with global news on rising defence spend may be a near-term trigger for BEL, the brokerage stated.
The government defence spending also rose 87% year-on-year in January 2025.
Another brokerage house JPMorgan retailed its ‘Overweight’ rating on BEL, with a price target of ₹343.
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, JPMorgan said.
Last week, BEL announced new orders worth ₹577 crore, taking the total order inflow for financial year 2025 to over ₹13,000 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, as per 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’ recommendation on the counter, one has a ‘Hold’ rating, while two others have a ‘Sell’ rating.
Shares of Bharat Electronics are trading 0.26% higher on Monday at ₹277.70. The stock has declined 5% so far this year.
