Bharat Electronics (BEL), a leading defence PSU company, has witnessed a significant recovery in its share price on BSE and NSE in the past 1 week. The heavy buying trend has turned all reds into greens in BEL stock which faced heavy selloffs in October. In 5 sessions alone, BEL has surged by 10% on BSE. The stock is currently above Rs 300 levels. 4 leading brokerages have recommended BUY with target prices ranging from Rs 340 to Rs 380.

BEL Share Price:

After the market hours of November 28, BEL’s share price closed at Rs 305.80 apiece on NSE, with a market cap of Rs 2,23,533.04 crore. The stock’s 52-week high and low are at Rs 340.50 apiece and Rs 140.40 apiece respectively. BEL stock has surged significantly in the last few days.

BEL’s weekly performance is up by 10%, while its month-on-month performance has surged by 8% which was in red last month. Further, in six months, BEL stock has gained by 5%. YTD, the stock rallied by a whopping 65.34%. Notably, BEL’s all-time gain is a whopping 138,900%. Once upon a time, BEL’s share price was merely at Rs 0.22 per share on January 1, 1999.

BEL Share Price Recommendation:

The majority of brokerages have recommended BUY in Bharat Electronics stock with a target price ranging from Rs 340 to Rs 380.

In its latest report, JM Financial said, “We remain positive on BEL given strong order backlog (INR 746bn) providing revenue visibility, sustained steady margin profile, healthy order prospects, increasing business opportunity from Indian Navy (indigenization and increasing fleet), continuous focus on diversification & exports markets and indigenisation push by GoI. We have assumed order inflows of c.INR 704bn for FY25 and FY26 combined, vs management guidance of INR 750bn. We expect revenue and PAT CAGR of 20% over FY24 – FY26E. We maintain a BUY rating on the stock with TP of INR 360 valuing it at PE of 45x FY26E, factoring in a strong order pipeline and defence outlook.”

Also, giving a Rs 360 target on BEL, Motilal Oswal’s note said, “We expect defence ordering to start ramping up in the coming quarters. We expect BHE to remain a key beneficiary of the same, with key focus areas being from naval, EW systems, artillery systems, platform orders, Kavach, exports, et al. We expect BHE’s revenue to grow at 19% CAGR over FY24-27, driven by improved market share on account of enhanced wallet share and improved indigenized offerings. We maintain our estimates and continue to value the company at 35x two-year forward earnings. Reiterate BUY with a TP of INR360. “

Furthermore, brokerage Elara Capital keeps above the Rs 340 target on BEL. The brokerage’s note said, “We are confident in BHE given its overall positioning in India Defence, led by a healthy order book with robust inflows, growing product portfolio and potential for margin improvement on product mix. Expect an earnings CAGR of 19% in FY24-27E with an ROE/ROCE of 27%/28% in FY25E-27E.”

Thereby, Elara’s note added, “We maintain FY25E/26E EPS estimates. We are TP to INR 345 from INR 355 on 40x (from 42x) September FY25E one-year forward P/E, due to some rationalization in valuations of Indian defence PSUs. We upgrade BHE to Buy (from Accumulate).”

Additionally, brokerage Sharekhan kept the Rs 380 target. Its note said, ” BEL has exceeded its FY2024 order intake guidance. The company’s future order pipeline is also promising as orders worth Rs. 65,000 crore (including QRSAM) are to be awarded in the next two years. We believe that BEL would play a significant role in successfully implementing the government’s Make in India and AtmaNirbhar Bharat initiatives, as it is a key defence and aerospace player. After the strong performance in this quarter, we roll our TP of Rs. 380 to 44x of FY2027 EPS.”

Bharat Electronics (BEL) Corporate Actions:

BEL has a strong track record of bonuses, dividends, and stock splits.

Bonus Issue: BEL has delivered as much as 5 free shares in three tranches. The last bonus shares allotment was of 2:1 ratio in September 2022, while its second bonus issue was of 1:10 ratio in September 2017. The first bonus issue by BEL was of 2:1 in September 2015.

Stock Splits: The defence giant has split up only once its since listing. The first stock split was of 1:10 ratio in March 2017, where the face value of Rs 10 each was trimmed to Rs 1 each.

Dividends: BEL has delivered at least 51 dividends since August 2001, as per Trendlyne data. In the last 12 months, the dividend was to the tune of Rs 2.20 per share. Its current dividend yield is at 0.72%.