Synopsis :- Large-cap Defence stock is in focus today after brokerage firm Jefferies has maintained a positive outlook on the company.
A Large-cap company that manufactures and supplies electronic equipment and systems to the defence sector, is in the spotlight after receiving Buy rating with revised target price by Jefferies.
With the market capitalization of Rs. 3,08,618.86 crore, the shares of Bharat Electronics Ltd closed at Rs. 422.20, down by 0.92 percent from its previous day’s close price of Rs. 426.10. It has touched an intraday low of Rs. 416.40 in today’s trading session.
Target and Rational
Jefferies reiterated its Buy rating on BEL and raised the target price to Rs. 510 (from Rs. 455) implying an upside of 20.8 percent from CMP, supported by better-than-expected quarterly performance and attractive valuation among industrial peers.
The brokerage highlighted an all-round beat, with EBITDA 20 percent above estimates, showcasing operational strength. It noted that Myanmar exposure remains under 5 percent of revenues, limiting risk, and said that earnings visibility has improved further, reinforcing confidence in BEL’s long-term growth trajectory.
Financial Outlook
Bharat Electronics Ltd (BEL) reported a strong performance in Q2FY26 with revenue rising 25.7 percent year-on-year to Rs. 5,792 crore from Rs. 4,605 crore in Q2FY25 and up 30.5 percent quarter-on-quarter from Rs. 4,440 crore in Q1FY26. Net profit grew 17.8 percent YoY to Rs. 1,287 crore from Rs. 1,093 crore, and 32.8 percent QoQ from Rs. 969 crore, reflecting robust operational growth and improved execution across key defence projects.
A return on equity (ROE) of about 29.2 percent and a return on capital employed (ROCE) of about 38.9 percent demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 56.5x lower as compared to its industry P/E 67.4x.
As of October 1, 2025, the company’s order book stood at Rs. 74,453 crore, reflecting a healthy business pipeline, while total order inflows for the current financial year reached Rs. 12,539 crore, indicating strong demand momentum and continued execution across key segments.
About the Company
Bharat Electronics Limited (BEL), founded in 1954 and headquartered in Bengaluru, designs, manufactures, and supplies advanced electronic systems for defense and civilian sectors. Its portfolio includes radars, communication systems, electronic warfare, avionics, and weapon systems, along with non-defense products like e-governance, solar, and telecom solutions. BEL also offers electronic manufacturing, cybersecurity, and software services, exporting to several countries including the US, UK, France, and Israel.
As of September 2025, the company’s shareholding pattern shows that promoters hold 51.14 percent of the total equity, indicating strong promoter ownership. Foreign Institutional Investors (FIIs) hold 18.56 percent, while Domestic Institutional Investors (DIIs) own 20.60 percent. The public shareholding stands at 9.70 percent, reflecting a healthy level of retail and institutional participation in the company.
Written by Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
