BEL gains on Rs 3,800 crore-order wins from Defence Ministry

At 9:26 am, shares of the company were trading percent at Rs 93.05 on the BSE. The stock has zoomed over 360 percent in the past three years but is down 8 percent YTD.

BEL within the defense PSU space has undergone decent price and time correction which has made risk-reward favourable, according to some analysts.

As per ICICI direct Research, “We expect stock to resume its uptrend in coming weeks and head towards Rs 110 which is 80 percent retracement of the entire decline of September 2022- January 2023 decline (Rs 114-87)”.

Despite order inflow of just Rs 3,736 crore in the first nine months of FY23, the management has reiterated its FY23 order inflow guidance of Rs 20,000 crore. Major orders expected are Himshakti programme of Rs 3,300 crore, Atulya medium-power radar of Rs 2,000-3,000 crore and orders worth approximately Rs 10,000 crore for radars and SONAR expected from naval shipyards, said ICICI direct Research.

BEL is an aerospace and defence electronics company. It has a multi-product, multi-technology- diverse product range including radar, missile systems, electronic warfare and avionics, anti-submarine warfare, electro-optics, home land security, civilian products, etc. BEL’s focus is on increasing non-defence share to around 20-25 percent over two to three years.

The domestic brokerage firm is of the view that BEL’s strategy to diversify into non-defence areas, focus on increasing exports and services share would aid long term growth and help de-risk its business.