BEL bags additional orders worth over Rs 500 crore, stock in focus

International brokerage Macquarie has maintained its ‘outperform’ recommendation on BEL with a price target of Rs 350, which implies a potential upside of 26 percent from previous closing price. The stock currently trading 18 percent below its recent peak of Rs 340.

All eyes would be on the quantum of orders that BEL manages to secure in the second half of the current financial year, said Macquarie in its note. While the current order inflows are lagging so far this year, it is not a cause for concern, it added.

BEL's order backlog will continue to support its growth trends, the supply chain remains a key monitorable for the company, Macquarie said. The brokerage is seeking clarity on three important aspects from BEL post its September quarter results, which can be key catalysts to drive the stock higher, going forward.

In the previous session, shares of BEL closed 3.5 percent lower at Rs 267.40 on the National Stock Exchange (NSE). The stock has risen around 44 percent so far this year, outperforming benchmark Nifty's returns of 15 percent.

In the past 12 months, the counter has rallied 96 percent, nearly doubling investors money. In comparison, Nifty's gained around 28 percent during this period.

However, since joining the Nifty50 index on September 30, BEL share price has experienced continuous declines, with no single day of gains. In the last five trading sessions, the counter has slumped over 7 percent.

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