Buy Bharat Electronics; target of Rs 250: Anand Rathi

Anand Rathi is bullish on Bharat Electronics has recommended buy rating on the stock with a target price of Rs 250 in its research report dated March 26, 2024.

Broker Research

March 27, 2024 / 20:01 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Anand Rathi's research report on Bharat Electronics

Bharat Electronics Ltd. (BEL), a prestigious Defense Public Sector Undertaking (DPSU), was founded in 1954 under the aegis of the Government of India's Ministry of Defence, with a primary objective to fulfill the electronic equipment necessities of the defence sector. Holding the majority ownership stake of 51.14%, the Government of India maintains its position as BEL's principal shareholder. Recognized as a Navratna PSU in June 2007, BEL stands as a key supplier of cutting-edge radar, communication, and electronic warfare systems to the Indian armed forces. The evolution of the company reflects the progress in defense electronics within India. Over the years, BEL has marked numerous significant achievements. A prime illustration of BEL's commitment to indigenous innovation is evident in the Akash Air Defence Weapon System, showcasing its prowess in design, development, and manufacturing. Additionally, the Coastal Surveillance System, tailored to bolster surveillance along India's extensive coastline spanning over 7,500 kilometers, is now being extended to allied nations. Advancements in radar technology, including the integration of the Weapon Locating Radar and 3D Tactical Control Radar, underscore BEL's significant strides in this domain. In the non-Defence business segment, company is into areas such as Homeland Security & Smart Cities, Solar, Satellite Integration & Space Electronics, Transportation Solutions (Railways/Metro, AAI, etc), Artificial Intelligence, Cyber Security, Software as a Service, Energy Storage Products and Electronic Voting Machines (EVMs), besides Composite Shelters & Masts.

Outlook

We expect BEL to see strong growth going forward due to many factors such as: 1) Moving towards elf reliance in defence, 2) Robust pipeline and focus of exports by GOI 3) Strong order inflow to drive the revenue growth 4) Healthy profitability and return indicators. We re-initiate a ‘BUY’ coverage with a target price of Rs 250.

For all recommendations report, click here