Buy Bharat Electronics; target of Rs 380: Sharekhan

Sharekhan is bullish on Bharat Electronics has recommended buy rating on the stock with a target price of Rs 380 in its research report dated October 28, 2024.

Broker Research

October 29, 2024 / 15:31 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on Bharat Electronics

Revenues grew by 14.9% y-o-y to Rs. 4,605 crore with margins expansion of 510 bps y-o-y. Results outperformed expectations on margin front. Higher revenue and margin led to PAT growth of 38% y-o-y to Rs. 1092 crore. Revenue growth guidance is at 15% and OPM at 23-25% for FY2025. Order inflows stood at Rs. 2,600 crore, taking the total order book to Rs. 74595 crore. The strong order book currently stands at 3.6x TTM sales. BEL has guided for order inflows of Rs. 25,000 crore for FY2025 and FY2026, excluding QRSAM orders. Cumulative order inflows for FY2026-FY2027 are expected to be at ~Rs. 75,000 crore (inc QRSAM orders). BEL boasts a promising order inflow pipeline, strong cash balance, and healthy return ratios. A strong Q2 makes us factor in estimates of 16%/16% revenue / PAT CAGR for FY24-27, respectively.

Outlook

Hence, we retain our Buy rating on the stock with a revised PT of Rs. 380. At the CMP, the stock trades at 49x/41x its FY2025/FY2026 earnings estimates.

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