Shares of this Navratna Defence Public Sector Undertaking (PSU) surged by nearly 5.2 percent to hit an intraday high at Rs. 293.45 on BSE, during the trading session of Friday. This positive fluctuation in the share price w sparked by Jefferies’s initiation of coverage on the stock with a bullish outlook.
With a market capitalisation of Rs. 2.13 lakh crores, at 01:04 p.m., the shares of Bharat Electronics Limited were trading in the green at Rs. 291.85, up by nearly 4.6 percent, as compared to its previous closing price of Rs. 278.9.
Brokerage Target
The global brokerage firm Jefferies has maintained a “buy” rating Bharat Electronics Limited (BEL) and assigned a target price of Rs. 370 per share, representing a potential upside of nearly 27 percent from the current trading price of Rs. 291.85.
Brokerage Outlook
Jefferies has maintained its ‘Buy’ rating on BEL, setting a target price of Rs 370 per share. This target was raised by 34 percent following a strong earnings performance that exceeded estimates and solid guidance for the third quarter.
The brokerage firm is confident in the sustainability of BEL’s profitab citing impressive margin strength, with the company’s EBITDA for Q3 surpassing expectations by 51 percent.
The EBITDA margin of BEL rose to 28.7 percent, significantly higher th the expected 23.7 percent, reflecting strong operational executio according to Jefferies. The brokerage also anticipates a growth in exports, expecting them to rise to 9 percent of sales, up from the current 2-3 percent.
While some volatility in quarterly revenue and margins is expected by the company due to fluctuations in deliveries, Jefferies remains positive abo BEL’s ability to maintain its guidance, which suggests a strong future outlook for the company.
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Financials & Order Book
The company reported a significant growth in revenue from operation experiencing a year-on-year rise of nearly 38.7 percent, from Rs. 4,162 crores in Q3 FY24 to Rs. 5,771 crores in Q3 FY25.
Similarly, its net profit decreased during the same period from Rs. 8 crores to Rs. 1,312 crores, representing a decline of nearly 52.5 percent YoY.
As of 1st January 2025, the company’s order book stood at Rs 71,100 crore, compared to Rs 74,595 crore as of September 2024, according to sources.
Stock Performance
The stock has delivered positive returns of nearly 57 percent in one year, but around 7.6 percent returns in the last six months. Moreover, the shares of Bharat Electronics have given negative returns of about 0.4 percent in the last one month.
About the Company
Headquartered in Bengaluru, Bharat Electronics Limited (BEL) is primarily engaged in the business of manufacturing and supply of electronic equipment and systems for the defence and civilian segments.
Written by Shivani Singh
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