Bharat Electronics shares gain as it secures orders worth Rs 1,385 crore in 2 weeks

Over the past month, BEL's stock has soared by 22 percent

Shares of Bharat Electronics Limited (BEL) surged by over a percent to Rs 305 per share on March 28 after the company announced that it had secured additional orders worth Rs 1,385 crore since its last disclosure on March 12, 2025.

Over the past month, BEL's stock has soared by 22 percent, significantly outpacing the 6 percent gain recorded by the benchmark Nifty index during the same period.

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The newly received orders encompass a diverse range of defence and electronic systems, including radar spares, radar upgradation, electronic voting machines, simulators, advanced land navigation systems, tank stabilisers, fire control systems for ship-based decoys, and communication equipment, among other high-tech solutions.

Of particular note, these state-of-the-art Active Electronically Scanned Array (AESA) radars have been entirely developed in India through a collaboration between the Defence Research and Development Organisation (DRDO) and BEL.

Meanwhile, JPMorgan has reaffirmed its "overweight" rating on BEL, maintaining a target price of Rs 343 per share. In its latest note, the brokerage firm highlighted that the recent 20 percent correction from the stock’s peak presents an attractive entry point into this Navratna PSU, given India’s structural growth in defence capex. According to JPMorgan, BEL remains the most diversified and consistent investment option within this high-growth sector.

The brokerage further projected that BEL’s revenue, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation), and Profit After Tax (PAT) will expand at a Compounded Annual Growth Rate (CAGR) of 15 percent, 17 percent, and 16 percent, respectively, between FY24 and FY27.

Additionally, the company is expected to maintain an average Return on Equity (RoE) of over 25 percent during this period, a performance JPMorgan described as "compelling."

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