Accumulate Bharat Electronics: Way2Wealth

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26 Aug, 2025 12:21

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Way2Wealth’s research report on Bharat ElectronicsBharat Electronics (BEL’s) growths prospects are directly linked with the defense spend in India. We believe BEL is well poised to enter into a high growth trajectory on account of anticipated increase in Indian defence budget, thrust on ‘Make in India’ initiatives, replacement & modernization of military hardware activity and offset contract opportunity in India.Play on Defence: Bharat Electronics (BEL), India’s largest defence electronics equipment manufacturer is all set to be a key beneficiary of Indian governments increasing thrust on the replacement and modernization of military hardware in the country.  Defence being a strategic subject for the country from security and secrecy viewpoint, we believe BEL, a public sector undertaking (PSU), will continue to get preference from the government for large orders as a supplier and system integrator.Outlook and ValuationsBEL’s growths prospects are directly linked with defence spend in India shields it from the global / domestic slowdown. Going forward, we believe, BEL will continue to thrive on an increasing defence budget, replacement and modernization of ageing military hardware and offset provision opportunity in India. The Company is a debt-free and cash-rich entity with Rs 59bn cash on books as on March 2015, implying Rs 245/share value.At CMP Rs 1252, the stock is quoting at PER of 19.1xFY17E earnings and EV/EBITDA multiple of 13.8xFY17E. We recommend ACCUMULATE on the stock for long-term basis.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions

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