Defence PSU Bharat Electronics Ltd (BEL) is back in the spotlight after Choice Broking revised its target price to ₹500, projecting an 18.48% upside from its current trading level of ₹407.60. The brokerage reaffirmed its ‘Buy’ rating, citing BEL’s strong order book, diversified portfolio, and long-term growth visibility.
Key Drivers Behind the Bullish Outlook
- Robust Order Book: BEL’s current order book stands at ₹71,650 crore, nearly 3x its FY25 revenue, with expectations of further inflows from major defence projects.
- Upcoming Projects: Key contracts like the ₹30,000 crore QRSAM and ₹40,000 crore Project Kusha are expected to boost revenue and execution momentum.
- Diversified Pipeline: BEL is well-positioned with offerings in NGC subsystems, LCA orders, LRSAM, and radar solutions, ensuring sustained growth across verticals.
Strategic Positioning in Defence Sector
Choice Broking emphasized BEL’s strategic role in India’s defence ecosystem, supplying to all three armed forces and collaborating with major defence PSUs. The company’s R&D strength, non-defence diversification, and foray into AI and cybersecurity further enhance its investment appeal.
“BEL is not solely reliant on orders from major PSUs. Its ability to secure independent contracts and expand into new tech domains strengthens its long-term prospects,” the report noted.
Market Performance Snapshot
- Current Price: ₹407.60
- Target Price: ₹500
- Valuation: 40x FY27–FY28 average EPS
- Upside Potential: 18.48%
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