BEL shares rise as Macquarie gives 'outperform' call; sees 20% upside

The aerospace and defence major has slipped over 5 percent in the past month.

Shares of Bharat Electronics Limited gained over a percent to Rs 295 in morning trade on September 25 after the company Macquarie dished out an 'outperform' rating on the counter and raised the target price citing robust growth prospects.

With a target price of Rs 350, the international brokerage sees an upside potential of 20 percent from the last close on the NSE. The aerospace and defence major has slipped over 5 percent in the past month.

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The company remains on track to meet its FY25 guidance, with attention now shifting to order inflows in the second half of the fiscal year, Macquarie said in a recent note. Analysts also added that  BEL’s current order backlog is expected to support growth trends, though supply chain challenges must be closely monitored. Key updates to watch in the post-Q2 management commentary will include the status of pipeline orders and supply chain developments.

Bharat Electronics Ltd (BEL), a leading defence equipment supplier, has entered the space products domain by signing a teaming agreement with Canada-based Reliasat Inc. The partnership, announced on September 19, involves collaboration on space products and was formalized by KV Suresh Kumar, Director (Marketing) at BEL, and Gurvinder Chohan, CEO of Reliasat Inc.

This alliance will combine the strengths of both companies in the space sector, enhancing BEL’s portfolio and bolstering its presence in the industry. The collaboration aligns with India's 'Atmanirbhar Bharat' and 'Make-in-India' initiatives, supporting the nation’s push for self-reliance in space technology.

At about 9:20 am, shares of the company were trading at Rs 294, higher by 0.9 percent from the last close on the NSE.