Bharat Electronics: Defence PSU BEL Offers 18% Upside Potential, Says Choice Broking
Introduction
Bharat Electronics Ltd (BEL), a prominent defence public sector undertaking (PSU), has garnered attention from analysts for its robust performance and promising outlook. Choice Broking has assigned a 'Buy' rating to BEL with a target price of ₹370, suggesting an 18% upside potential from the current levels.
Strong Financial Performance
BEL's recent financial results have been impressive, showcasing significant growth:
Revenue Growth: The company reported a 39.3% year-on-year increase in revenue for Q3FY25, reaching ₹57.7 billion, surpassing expectations.
Profitability: EBITDA rose by 55.7% YoY to ₹16.7 billion, with a margin improvement of 304 basis points, reflecting efficient cost management.
Net Profit: PAT surged by 51.3% to ₹130.1 billion, highlighting strong operational execution.
These results underscore BEL's capacity to capitalize on opportunities within the defence sector.
Robust Order Book and Future Prospects
BEL's order book remains healthy, providing a solid foundation for future growth:
Order Inflows: The company secured orders worth ₹585 crore recently, contributing to a total order inflow of nearly ₹3,500 crore for June 2025.
Strategic Positioning: BEL's involvement in key defence projects, such as LRSAM, Weapon Locating Radar, and Akash, positions it favorably within India's defence ecosystem.
Analysts anticipate continued growth driven by these strategic initiatives and a favorable defence procurement environment.
Analyst Perspective
Choice Broking's recommendation is based on several factors:
Valuation: The target price of ₹370 implies an 18% upside from current levels, presenting an attractive investment opportunity.
Sector Outlook: The defence sector's expansion, supported by government initiatives and increased capital expenditure, bodes well for BEL's prospects.
Execution Excellence: BEL's track record of timely project execution and technological advancements enhances investor confidence.
Frequently Asked Questions (FAQs)
Q1: What is the target price set by Choice Broking for BEL?
A1: Choice Broking has set a target price of ₹370 for Bharat Electronics Ltd, indicating an 18% upside potential from current levels.
Q2: How has BEL performed financially in recent quarters?
A2: BEL reported a 39.3% year-on-year revenue growth in Q3FY25, with significant increases in EBITDA and net profit, reflecting strong operational performance.
Q3: What is the current order book size of BEL?
A3: As of June 2025, BEL's order book stands at approximately ₹71,650 crore, providing a solid foundation for future growth.
Q4: What are the key factors driving BEL's positive outlook?
A4: BEL's involvement in strategic defence projects, efficient execution, and a favorable sector environment contribute to its positive outlook.
Q5: Is BEL a suitable investment for long-term investors?
A5: Given its strong fundamentals, robust order book, and sector positioning, BEL presents a promising opportunity for long-term investors.
Published on: June 26, 2025
Uploaded by: PAVAN
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