Bharat Electronics Sees Bright Future: Analysts Boost Price Targets
BEL Shares Rise on Strong FY26 Outlook
Shares of Bharat Electronics Ltd. (BEL) are on the rise after the company delivered optimistic guidance for the upcoming financial year.
Analysts Upbeat
Most analysts covering BEL have raised their price targets on the stock following the company’s earnings call on Tuesday. They were particularly impressed by BEL’s bullish predictions for both revenue and new orders.
Order Inflow Projections
BEL expects a significant jump in order inflows, excluding a potential large order for the Quick Reaction Surface-to-Air Missile (QRSAM), which could reach ₹27,000 crore in the new financial year. If the QRSAM order comes through, this number could surge to ₹57,000 crore.
Revenue Growth and Margins
The management is forecasting a 15% revenue growth this year, along with an impressive EBITDA margin of 27%.
JPMorgan Sees 22% Upside
Brokerage firm JPMorgan is especially bullish on BEL, maintaining an “overweight” rating with a price target of ₹445. This represents a potential upside of 22% from Tuesday’s closing levels and is the highest price target among analysts.
Factors Driving Optimism
JPMorgan highlights BEL’s strong performance during the recent India-Pakistan conflict, citing the successful deployment of its equipment and systems. They also point to the increasing domestic defense spending, which positions BEL favorably for continued growth.
Other Analyst Views
Morgan Stanley agrees, keeping its “overweight” rating with a revised price target of ₹418. They praise BEL’s execution track record, supply chain management, and robust order pipeline.
CLSA raised its price target to ₹423 and maintains its “outperform” recommendation, noting that the slowdown in order inflows and backlog experienced in the previous year is over. They expect BEL to secure orders worth nearly $6 billion in the next 15 months, leading to an 8% to 11% increase in Earnings Per Share (EPS) over the next financial year.
Macquarie also has an “outperform” rating on BEL with a price target of ₹400. They are encouraged by the near-term confidence provided by other potential fast-track orders, as well as BEL’s positive margin guidance.
Strong Investor Sentiment
Out of the 28 analysts covering BEL, 24 have a “buy” rating, two have a “hold” rating, and two have a “sell” recommendation. This overwhelming positive sentiment reflects the market’s confidence in BEL’s future prospects.
Share Performance
Shares of BEL ended slightly higher on Tuesday, recovering from an earlier dip to ₹364.5. The stock has gained a remarkable 21% in the past month, demonstrating the growing investor interest in this promising company.
