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BEL Stock Soars: Defence Giant Eyes ₹540 Target
4 Nov
Summary
- BEL shares experienced a nearly 5% intraday surge.
- Motilal Oswal reiterated a 'Buy' rating with a ₹540 target.
- Q2 revenue increased 26% year-on-year to ₹73 billion.
Bharat Electronics Limited (BEL) witnessed a significant uptrend in its share price, marking a nearly 5% rise to an intraday high of ₹396.95. This performance was bolstered by broad-based positive sentiment in the defence sector and optimistic post-earnings analysis. Domestic brokerage Motilal Oswal Financial Services has reinforced its 'Buy' recommendation for BEL, adjusting its price target to ₹540 from ₹530.
BEL announced robust financial results for the second quarter, surpassing revenue, EBITDA, and PAT expectations. Revenue grew by 26% year-on-year to ₹73 billion, while absolute EBITDA saw a 20% increase to ₹20.4 billion, despite a slight margin contraction. Profit After Tax (PAT) also rose by 20% year-on-year to ₹15.4 billion.
The company's order book stood at ₹687 billion at the end of Q2FY27, predominantly from defence programmes. Although order inflows were noted to be lower year-on-year, potential significant orders, including the QRSAM worth ₹300 billion and next-generation corvettes valued at ₹200 billion, are anticipated. Motilal Oswal projects a 15% CAGR for revenue and PAT over FY26-29.
