Shares of Bharat Electronics Ltd (BEL), a key defence PSU, rose almost a percent to Rs 274 in morning trade on March 11 after bagging fresh orders worth Rs 843 crore, pushing its total order inflows for FY25 to Rs 14,567 crore. The new contracts span RF seekers, radar upgrades, vessel and air traffic management systems, electro-optic repair facilities, spares, and services.
The company had previously won a Rs 577 crore order on March 6 for airborne electronic warfare systems, submarine communication solutions, Doppler weather radar, and train communication systems.
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Despite strong order momentum, BEL’s stock has slipped 18 percent from its recent high of Rs 340.50. However, global brokerages remain optimistic about its growth trajectory.
Jefferies has reaffirmed a ‘Buy’ rating with a target price of Rs 325, suggesting a 19.4 percent upside from the last closing price of Rs 272 on the National Stock Exchange. The stock closed 1.71 percent lower at Rs 272.25 on the NSE. BEL will need to secure around Rs 10,460 crore worth of orders in March-April 2025 to meet its Rs 25,000 crore fiscal year target.
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Additionally, JPMorgan also maintaining its ‘Overweight’ stance with a Rs 343 price target, believes the 20 percent decline in BEL’s stock presents a buying opportunity. The brokerage expects the company to announce Rs 12,000 crore worth of fresh orders by March 31, which could serve as a near-term trigger for the stock.
With rising global defence budgets, BEL could be well-positioned to benefit from India’s growing focus on domestic defence manufacturing. JPMorgan highlights the company’s diversified operations and steady execution as key strengths in the sector’s capex expansion.
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In Q3, the company's net profit increased by 47.3 percent from last year to Rs 1,316 crore while revenue for the quarter stood at Rs 5,756 crore, which is a growth of 39 percent from the year-ago quarter. BEL's EBITDA increased by 57.5 percent year-on-year to Rs 1,653 crore while its EBITDA margin expanded by 330 basis points from last year to 28.7 percent from 25.4 percent.
BEL shares have slipped over 13 percent in the last three months.
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