Bharat Electronics
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →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
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 |
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.