DINESH

Bharat Electronics

Latest CMP 411
Today's Change ▲ 0.07%
52-Week High / Low 468 | 362
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 519
Expected Upside 12.4%
Forecast Horizon 2 Years
Historical CAGR 21.7%
1,000 Invested 15-Aug-2006
Today's Value 51,123
Investment Period 20 Years

Stock Snapshot

Post Results Return
-3.3%
Mild Negative Re-rating
1-Year Target Price
480
2-Year Target Price
519
52-Week High / Low
468 / 362
20-Day Return
+0.8%
Market Cap (Cr.)
300,295
Current PE
48.9
P/BV Ratio
12.5
Dividend Yield
1.0%
Industry PE
86.5

Price Performance

Basis of our Recommendation

Bharat Electronics Limited (BEL) is positioned for stable growth, supported by a robust order backlog and strategic focus on indigenization and advanced technologies. Management's confidence in achieving over 15% revenue growth for FY27, alongside a target EBITDA margin of 28%, is underpinned by a strong pipeline of defense contracts, including the anticipated QRSAM order. However, the company faces execution risks related to supply chain management and potential delays in government approvals, which could impact short-term profitability. The defense sector's expansion, driven by geopolitical tensions and increased government spending, aligns with BEL's growth strategy, enhancing its competitive position. Despite expected margin pressures due to product mix variations, the long-term outlook remains positive, supported by significant investments in R&D and capital expenditure aimed at enhancing manufacturing capacity. Over the next 12-24 months, key opportunities include scaling exports and diversifying into non-defense sectors, while watchpoints include execution risks and fluctuations in defense budget allocations

👍 Why We Like This Stock

  • Strong order backlog of INR 723bn provides significant revenue visibility and supports management's growth targets
  • Strategic focus on indigenization and advanced technologies enhances competitive positioning and long-term profitability
  • Positive industry dynamics, including increased defense spending and geopolitical tensions, support BEL's growth trajectory

Things To Watch Out For

  • Execution risks related to supply chain management and potential delays in government approvals could impact short-term performance
  • Margin pressures due to product mix variations may hinder profitability despite long-term growth prospects
  • Dependence on government contracts and fluctuations in defense budget allocations pose risks to revenue stability

Key Parameters

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
Consistent
FII Holdings
Reducing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 20,268 23,769 27,610 29,485 35,695
Profit Before Tax (Cr.) 5,240 7,076 8,052 8,467 10,411
PBT Margin 25.9% 29.8% 2916.3% 28.7% 29.2%
Net Profit (Cr.) 3,833 5,350 6,062 6,350 7,808
Earnings Per Share 5.2 7.3 8.3 8.7 10.7

Analyst Recommendations

Broker Recommendation Target Price Date
CLSA ▲ Outperform 522 28-Jul-2026
Choice Equity ▲ Buy 500 28-Jul-2026
Citigroup ▲ Buy 515 23-Jun-2026
Elara Capital ► Accumulate 480 28-Jul-2026
Goldman Sachs ▲ Buy 470 28-Jul-2026
HDFC Securities ► Add 440 28-Jul-2026
ICICI Securities ▲ Buy 530 28-Jul-2026
JMFinancials ▲ Buy 485 28-Jul-2026
JPMorgan ▲ Overweight 525 28-Jul-2026
Jeffries ▲ Buy 550 28-Jul-2026
Kotak Securities ▼ Sell 400 30-Jun-2026
Macguire ▲ Outperform 550 28-Jul-2026
Moneycontrol ▲ Overweight nan 28-Jul-2026
Morgan Stanley ► Equalweight 508 01-Apr-2026
Motilal Oswal ▲ Buy 530 29-Jul-2026
Nomura ► Neutral 454 28-Jul-2026
Nuvama ▲ Buy 485 21-May-2026
Prabhudas Liladhar ► Accumulate 452 28-Jul-2026
UBS ▲ Buy 500 20-May-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 496
Coverage 19 Analysts
Analysts' Viewpoint
Bharat Electronics benefits from a strong order book of INR 72,258 crore, providing substantial revenue visibility and supporting its ambitious growth targets. Analysts highlight the company's strategic expansion into advanced defense electronics and export markets, which are expected to drive long-term growth. However, potential risks include execution delays in large defense contracts like QRSAM and margin pressures from adverse product mix. Future catalysts include anticipated approvals for major defense projects, which could significantly boost order inflows and execution capabilities.

Company Overview

Show Company Profile

Bharat Electronics Limited designs, manufactures, and supplies electronic equipment and systems for the defense and civilian markets in India. The company's defense products include defense communication products, land-based radars, naval systems, electronic warfare systems, avionics, electro optics, tank and armored fighting vehicle electronic systems, weapon systems, C4I systems, upgrades, shelters and masts, simulators, batteries, components and devices, fuzes and unmanned systems; microwave tubes and power modules, microwave super components, digital multichannel data recorders, and hybrid micro circuits; and micro-electro mechanical systems, such as pressure transducers, and conductivity temperature and depth sensors. Its non-defense products comprise e-governance systems, homeland security products, civilian radars, and telecom and broadcast systems; integrated traffic management systems, real time train information systems, and solar power solutions; and PD and strategic products, silicon radiation detectors, passive vacuum devices, EMI filters, and multichannel voice logging recorder systems. It also provides electronic manufacturing services, including PCB assembly and testing, precision fabrication, microwave integrated circuit assemblies, super components modules, cable assemblies, and antennae manufacturing services; designs and manufactures transformers, coils, chokes, and sub-assemblies; and software services. In addition, the company offers cyber security products, such as data diodes and secure storage products; EV charging stations; and platform screen doors. Further, the company provides security architecture conceptualization and consulting, and information security audit services. It exports its products to the United States, France, Spain, the United Kingdom, Mauritius, Seychelles, Mauritius, the Republic of Armenia, Sri Lanka, Sweden, and Israel. Bharat Electronics Limited was incorporated in 1954 and is headquartered in Bengaluru, India.