PSU defence stock hits new high on heavy volumes; zooms 24% in 2 weeks

Business Standard

21-05-2025

Bharat Electronics share price today
Share price of Bharat Electronics (BEL) hit a new peak of ₹379.90 today, gaining 4 per cent on the BSE in Wednesday's intraday trade amid heavy volumes, as strong order book position provided healthy revenue visibility going forward.
In the past two weeks, the stock price of the 'Navratna' defence public sector undertaking (PSU) company has rallied 24 per cent. Moreover, BEL share price has bounced back 51 per cent from its previous month low of ₹252.25, touched on April 7, 2025.
At 10:43 AM, BEL shares were trading 3.9 per cent higher at ₹378 as compared to 0.95 per cent rise in the BSE Sensex index. Around 37.66 million equity shares have, together, changed hands on the NSE and BSE. Catch Stock Market LIVE Updates Today
BEL Q4 results
BEL reported a 15 per cent year-on-year (Y-o-Y) rise in net profit at ₹2,127 crore for the fourth quarter of financial year 2024–25 (Q4FY25). The company had posted a profit of ₹1,796.67 crore in the corresponding quarter of the previous financial year. The company reported a 6 per cent Y-o-Y increase in revenue from operations, which stood at ₹9,149.59 crore in Q4FY25, compared to ₹8,564.08 crore in Q4FY24.
BEL order book
As on April 1, 2025, the total order book of BEL stood at around ₹71,650 crore, including export order book of $359 million.
On May 16, 2025, BEL announced that it has secured additional orders worth ₹572 crore. The major orders received by BEL include Integrated Drone Detection and Interdiction System (IDDIS), Software Defined Radio (SDR) and Data Communication Unit (DCU) for attack guns, AI based solutions for ships, simulators, communication equipment, jammers, spares, services etc.
Earlier, on April 7, 2025, BEL announced that it has signed a deal with the Defence Ministry, worth ₹2,210 crore, for the supply of Electronic Warfare (EW) Suite for Mi 17 V5 Helicopters of Indian Air Force (IAF).
In FY25, BEL secured orders worth ₹18,715 crore. Some of the major orders received during FY25 were BMP II Upgrade, Ashwini Radar, Software Defined Radios, Data link, Multi-Function Radars, EON 51, Seekers, Anti drone system, Airport Surveillance Radar, Sonar Upgradation, Flycatcher spares, Radar upgradation, Spares and Services etc and other projects in Non-defence sector.
Order inflows for FY26 is estimated around ₹27,000 crore, excluding Quick Reaction Surface-to-Air Missile (QRSAM) order (worth ₹30,000 crore). QRSAM order is expected to be booked in Q4FY26. However, there might be some delay and may slip to Q1FY27, BEL said.
The Management has guided for revenue growth of 15 per cent for FY26. It is also confident to maintain earnings before interest, taxes, depreciation and amortisation (Ebitda) margins at 27 per cent level, driven by increasing indigenise components in its subsystems and operating leverage.
The Government's growing capital budget allocation and continued focus on increasing India's defence product manufacturing capability are expected to support the order inflow for BEL in the medium to long term. Additionally, the Government of India's increased focus on increasing indigenous procurement under 'Atmanirbhar Bharat' provides a unique opportunity for BEL to build its future revenue streams through development of domestic capabilities, according to analysts. ALSO READ |
Brokerage View: JM Financial Institutional Securities on BEL
The brokerage remains positive on BEL given the strong order backlog (₹71,600 crore), which provides revenue visibility. Besides, sustained steady margin profile, healthy order prospects, increasing business opportunity from Indian Navy (indigenization and increasing fleet), continuous focus on diversification (including anti-drone system) & exports markets and indigenisation push by the government of India augur well for the defence stock.
Strengthening vendor/supplier base along with internal process improvement will help company to execute projects faster. Capex planned to be ₹1,000 crore/year for next couple of years towards capacity expansion. BEL continues to explore new growth opportunities through diversification, capability enhancement, competitiveness, modernization and export initiatives.
Factoring in strong EBITDA margin guidance, analysts at the brokerage have revised their EPS estimates upwards by 3.6 per cent/4.3 per cent for FY26/27E. The brokerage firm expects revenue and profit after tax (PAT) to see a compounded annual growth rate (CAGR) of 16 per cent/12 per cent over FY25-27E.
Analysts maintain a 'Buy' rating on BEL stock with a revised target price of ₹405 (₹360 earlier), valuing it at 45x FY27E (42x FY27E EPS earlier), on the back of a strong defence outlook and order pipeline. ALSO READ |
About BEL
BEL, a Navratna DPSU, was established in 1954 under the Ministry of Defence, the GOI, to cater to the electronic equipment requirements of the defence sector. The GOI remains BEL's largest shareholder with the current shareholding of 51.14 per cent. BEL is the dominant supplier of radar, communication and electronic warfare equipment to the Indian armed forces. The company has nine manufacturing units across India and two research units. The Bangalore and the Ghaziabad units are BEL's two major units, with the former contributing to the largest share of the company's total revenues and profits.