BEL Share Price: What Drove Navratna PSU Stock To A 52-Week High Today?

Defence Stock In Focus: The shares of key defence vertical player Bharat Electronics (BEL) surged as much as 4.24 per cent on the backs of strong order inflows and analysts raising the target price for the maker of electronics products and systems for Indian Armed Forces.

The Navratna public sector undertaking (PSU) that's already rallied upto 26 per cent is anticipating orders totaling Rs 27,000 crore during the current financial year and that is excluding the Quick-Reaction Surface-to-air Missile order, which is valued at Rs 30,000 crore.

In response, brokerages have raised their price targets across the board for BEL, expecting the stock to test levels of Rs 450 over the next 12 months.

The top echelon of Bharat Electronics is anticipating revenue growth of 15 per cent this year, along with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins of 27 per cent.

Out of the 28 analysts that have coverage on Bharat Electronics, 24 of them have a "buy" rating, while two each have a "hold" and "sell" recommendation on the stock.

Shares of BEL ended little changed on Tuesday, having recovered from the lows of the day at Rs 364.5. The stock has risen 21 per cent in the last one month.

The key message from BEL during its earnings call was that the slowdown in its order inflows and backlog in the previous financial year, due to a high base, is over, CLSA wrote in its note.

BEL is set to win orders worth nearly USD 6 billion in the next 15 months and margins have set the stage for its Earnings Per Share (EPS) to increase by 8 per cent to 11 per cent over financial year 2026-2027.

As of 11:47 am on Wednesday, the shares of Bharat Electronics Ltd (BEL), was trading 2.96 per cent higher at Rs 374.45 per share.