Buy Bharat Electronic; target of Rs 112: Geojit

Geojit is bullish on Bharat Electronic has recommended buy rating on the stock with a target price of Rs 112 in its research report dated March 31, 2023.

Broker Research

April 03, 2023 / 18:23 IST

Buy

26 Aug, 2025 12:21

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Geojit's research report on Bharat Electronic

Bharat Electronics Ltd. (BEL) is a Navaratna enterprise with 37% market share in Indian defence electronics. BEL’s core capabilities are in radar & weapons systems, defence communication, & electronic warfare. 9MFY23 revenue grew by 25% YoY, PAT was up by 36% YoY, led by better execution. 9MFY23 EBITDA margin improved by 50bps YoY to 20.0%, and absolute EBITDA grew by 28% YoY. The order backlog at the end of Q3FY23 was at Rs.50,116cr (3.3x FY22 sales), providing strong earning visibility for the next 3 years. The order book is boosted by ~Rs.16,000cr worth of orders towards the end of the year, bringing the total order backlog to Rs.66,410cr (4.4x FY22 sales). The cumulative order intake for the year was Rs.19,800cr. We maintain our positive view in the long term, considering strong order book visibility, execution prowess, and a stable margin profile ~22%. While PAT continues to grow at a 16% CAGR over FY23E-25E.

Outlook

We value BEL at a P/E of 21x on FY25E, and given recent order wins, upgrade to Buy from Hold rating with a target price of Rs.112.

For all recommendations report, click here