Shares of Bharat Electronics Ltd. (BEL), the state-run defense equipment manufacturer, have surged over 60% in the past 12 months, making BEL a top pick in the defense electronics space for Amit Anwani of Prabhudas Lilladher.
Analyst Optimism and Price Target
Research analyst Amit Anwani remains optimistic about BEL, setting a price target of ₹341 per share, indicating a potential upside of nearly 16% from current levels.
Insights from CNBC-TV18 Interaction
In an interaction with CNBC-TV18, Anwani highlighted the company's expectation of an order intake exceeding ₹30,000 crore in the coming years. "In my coverage universe, I remain positive on BEL. We have a target price of about ₹341, and over the next four to five years, there is still room for upside. The company has indicated that it can sustainably achieve an annual order intake of ₹25,000-30,000 crore over the next three to four years," he said.
Order Book Robustness
Anwani also noted the strength of BEL’s order book over the past three years. "The defense sector has historically been highly cyclical, with long-duration order books. However, the order book buildup has been strong over the past three years, driving a significant rally in stock prices," he added.
Sectoral Reforms and Optimism
Commenting on sectoral reforms, Anwani expressed optimism: "The ongoing reforms in the defense sector are highly encouraging. Currently, I am particularly positive about the defense electronics segment, with BEL being my top pick. Although I don’t cover other private-sector companies extensively, there is notable activity in areas like simulation and training, where Zen Technologies could benefit. Similarly, developments in hypersonic technologies might favor companies such as Astra Microwave Products and Apollo Micro Systems. However, valuations in the sector are stretched, so investors need to be selective."
Positive Trajectory of the Defense Sector
Anwani concluded by emphasizing the positive trajectory of the defense sector due to reforms implemented over the past five years.
BEL's Recent Orders and Analyst Ratings
BEL has won orders worth ₹9,801 crore so far in 2025, amounting to 40% of the total order inflow guidance of ₹25,000 crore projected for the full financial year 2025. Among the 26 analysts covering the Nifty PSU stock, 21 have a 'Buy' rating on BEL, while two have a 'Hold' rating and three have a 'Sell' rating.
Current Trading Performance
Shares of BEL are trading near the day's lows at ₹294.30, up 1% so far in 2025.
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