Buy Bharat Electronics; target of Rs 500: Choice Equity Broking

Buy

Choice Equity Broking's report on Bharat Electronics

We remain optimistic on BHE, given its robust order book stands at INR 716.5Bn (3.0x FY25 Revenue). We believe the companies order inflow will gain traction due to emergency procurement and speeding up the existing projects. supported by marquee upcoming projects such as the INR 300+Bn QRSAM order and the INR 400Bn Project Kusha. The company’s diversified pipeline, including NGC subsystems, additional LCA orders, and critical defense systems like LRSAM & radar solutions, positions it well for sustained revenue growth and market leadership.

Outlook

We have introduced FY28E estimates and, based on the average FY27/28E EPS, revised our target price to INR 500 (earlier INR 420), valuing the stock at 40x, while maintaining our ‘BUY’ rating. The revision reflects our continued confidence in BHE’s long-term growth visibility and strong execution capabilities.

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Bharat Electronics - 25062025 - choice