Buy Bharat Electronics; target of Rs 130: Sharekhan

Sharekhan is bullish on Bharat Electronics has recommended buy rating on the stock with a target price of Rs 130 in its research report dated October 28, 2022.

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November 01, 2022 / 17:24 IST

26 Aug, 2025 12:21

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Sharekhan's research report on Bharat Electronics

Bharat Electronics Limited’s (BEL)’s Q2FY2023 performance was in-line with our and street expectations. While sales growth was satisfactory, the highlight was a sequential improvement in gross and operating margins. Order backlog as on October 01, 2022 was at Rs. 52,795 crore, at ~3.1x its TTM revenue. However, order intake seems to be muted during Q2FY2023. BEL has signed an MoU with Munitions India Limited (MIL), a defence PSU to pursue domestic and export opportunities. It has also bagged an order of ~Rs. 8,060 crore for Li-Ion battery packs from Triton Electric Vehicle, India. Further, growing exports (~60% CAGR over FY2022-FY2024E) shall also aid revenue growth.

Outlook

We retain our Buy rating on BEL with an unchanged PT of Rs. 130, considering its improving performance, backed by promising order inflow pipeline in both defence and non-defence verticals.

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