Buy Bharat Electronics; target of Rs 450: Anand Rathi

Anand Rathi is bullish on Bharat Electronics has recommended buy rating on the stock with a target price of Rs 450 in its research report dated May 21, 2025.

Broker Research

May 22, 2025 / 11:00 IST

buy

26 Aug, 2025 12:21

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Anand Rathi's research report on Bharat Electronics

Bharat Electronics limited reported revenue growth from operations of 6.8% YoY to Rs 91,496 million on a consolidated basis in Q4 FY25 as compared to Rs 85,641 million in Q4 FY24. In terms of exports, its is ~10% of total order book. Non-defence currently constitutes 6-7% of revenue and when EVM related execution are there then it jumps to 12-13% of revenue. Consolidated EBITDA stood at Rs 28,161 million in Q4 FY25 as compared to Rs 22,872 million in Q4 FY24, a growth of 23.1% YoY with margin of 30.8% up by 407 bps YoY due to better product mix. Consolidated PAT stood at ₹ 21,270 million in Q4 FY 25 as compared to Rs 17,967 million in Q4 FY24, up by 18.4% YoY with a margin of 23.2%, up by 227 bps YoY. Order book position as on 1 st April 2025 stood at Rs 7,16,500 million. Order book includes LRSAM, Himshakti, Akashteer project, Arudhra radar, Integrated Air Command and Control System (IACCS), Next Generation Corvette (NGC) Program, Make in India Drones & UAVs Systems etc.

Outlook

We expect BEL to see strong growth going forward due to many factors such as: 1) Moving towards self reliance in defense, 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 maintain a ‘BUY’ rating on the stock with a revised target price of Rs 450.

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