Nifty India Defence Index and its constituents had given impressive returns to its Investors, however, during this market decline the Index has declined more than 31.87 percent from its 52-week high of Rs. 8,302, and most of the constituents have severely Underperformed but Bharat Electronics has sustained the downfall, declining just 5 percent on a Year to date basis and down 17.4 percent from its 52-week high.
Why BEL has Outperformed the Index
The company has a robust Orderbook and in total has accumulated Rs.17,030 Crore in the current financial year and the total Order book as on 1st January, 2025 stood at Rs. 71,100 Crore and the Company continuously gets new Orders. Company has expertise in Several fields like Defence, Non-Defence, Software, Electronic Manufacturing, and Exports.
Several brokerage firms remain bullish on the stock, with an average target price of Rs. 330, implying a potential upside of 18.27 percent from the current level of Rs. 279. Out of the 24 analysts covering the stock, 16 have issued a Strong Buy rating, while 5 have recommended a Buy. On the downside, only 1 analyst has given a Sell rating, and another has issued a Strong Sell.
Company has had robust financial performance over several years, the company has achieved a Net Sales CAGR of 12.01 percent over the last 10 years, reflecting strong and consistent growth. Its sales have increased from Rs. 6,518 crores in FY14 to Rs. 20,268 crores in FY24. And also has robust growth in FY 25.
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Financial Highlights
The company reported a 38.65 percent YoY increase in revenue from Rs. 4,162 Crore in Q3FY24 to Rs. 5,771 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 20.20 percent in revenue from Rs. 4,605 Crore in the previous quarter.
Their Net profit saw an increase of 52.55 percent YoY from Rs. 860 Crore to Rs. 1,312 Crore for the same period. On a QoQ basis, the company reported an impressive increase of 20.03 percent in Net profit from Rs. 1,093 Crore in the previous quarter.
About the Company
Bharat Electronics Limited (BEL) is a leading Indian aerospace and defence company specializing in the design, development, and manufacturing of advanced electronic systems for the armed forces, as a government-owned enterprise under the Ministry of Defence, BEL plays a crucial role in India’s defense sector.
Written By Abhishek Das
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