Sharekhan has recommended buyers for Bharat Electronic Ltd (BEL), and set a target of Rs. 120. The company’s FY23 performance, as per provisional numbers, has been in line with expectations. It has reported an increase of 15% y-o-y in revenue, along with an order inflow of Rs. 20,000 crore. Gross margins and Operational Profit Margins (OPM) were in line with the guidance of 40% and 22-24%, respectively. Moreover, its order backlog stands strong at Rs. 60,500 crore, which is 3.5 times its FY23 revenue. BEL is also trying to diversify its business by increasing non-defence revenue and exploring potential export opportunities.
Established in 1954, Bharat Electronic Ltd (BEL) is a public sector undertaking, owned by the Government of India. The company is engaged in the manufacture of a wide range of advanced electronic equipment and products. It is one of India’s largest Aerospace and Defence companies, catering to the Indian Armed Forces, both in India and abroad.
Sharekhan’s report is optimistic about BEL’s future prospects, highlighting the health of its order inflow pipeline and order book. The strong balance sheet serves as a further assurance of secure investments in BEL. It also recommends investors to buy BEL’s shares and retain an unchanged PT of Rs. 120, taking into account its performance for FY 2025E EPS. Although potential investors must keep in mind the risks involved and should consult with certified experts before any investment decisions.