India’s aerospace and defense sector, valued at USD 27.1 billion in 2024, is projected to grow at a CAGR of 6.99% to reach USD 54.4 billion by 2033. Defense production reached a record Rs 1.27 lakh crore in FY 2023-24, with exports touching Rs 21,000 crore, highlighting India’s emergence as a global defense manufacturing hub.
With a market capitalization of Rs 2.75 lakh crore, the shares of Bharat Electronics Ltd were trading at Rs 375.75 per share, increasing around 3.31 percent as compared to the previous closing price of Rs 363.70 apiece.
Brokerage Recommendations
JPMorgan, one of the well-known brokerages globally, has given an ‘overweight’ rating on this defence stock with a target price of Rs 445 apiece, indicating an upside of 22 percent from a previous closing price of Rs 363.70 per share.
JPMorgan stated that Bharat Electronics Ltd’s (BEL) medium-term growth outlook has improved following the strong performance of its equipment during the recent India-Pakistan conflict. The brokerage added that BEL is well-positioned to benefit from structural tailwinds driven by rising domestic defense spending, reinforcing its long-term growth potential.
BEL stated that order inflows for the new financial year are expected to reach Rs 27,000 crore, excluding the potential QRSAM order. If the QRSAM deal comes through, total inflows could rise to Rs 57,000 crore. The company also anticipates 15 percent revenue growth and aims to maintain healthy EBITDA margins of 27 percent for the year.
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Additionally, BEL is poised to secure nearly $6 billion in orders over the next 15 months, with EPS projected to grow 8–11 percent by FY 2026–27. Despite a delay in the QRSAM order, other fast-track deals boost near-term confidence.
Looking forward to the company’s financial performance, revenue increased by 7 percent from Rs 8,564 crore in Q4FY24 to Rs 9,150 crore in Q4FY25. Further, during the same time frame, net profit increased by 18 percent from Rs 1,797 crore to Rs 2,127 crore.
Bharat Electronics Limited manufactures and supplies electronic equipment and systems for the defense sector as well as for non-defense markets. Its defense products include navigation systems, defense communication products, land-based radars, naval systems, electronic warfare systems, avionics, electro-optics, tank & armored fighting vehicle electronic systems and weapon systems, simulators, and others.
Written by Abhishek Singh
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