Top Stock Pick For 2025  — Bharat Electronics Can Rally 30% On Ramp-Up In Defense Orders, Says Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

We continue to remain positive on Bharat Electronics Ltd. given-

1. its market leadership in defense electronics and ability to benefit from defense indigenization as well as from the upcoming large defense platform orders (QRSAM, MRSAM, Tejas Mk1A, naval platforms, etc.),

2. a strong order book of Rs 746 billion as of Q2 FY25-end, providing healthy visibility on revenue,

3. stable margins and control over working capital, and

4. healthy return ratios.

Despite BEL’s overall FY25YTD orders of Rs 103 billion being lower than last year’s, we expect the company to gain from the further ramp-up in defense orders in the coming months. The recent DAC approvals augur well for the sector and emphasize the government’s focus on defense indigenization.

The company is continuously expanding its presence across new areas via its SBUs. It is also focusing on improving the share of exports and non-defense projects in the overall order book.

We tweak our estimates to bake in slightly lower ordering estimates and roll forward our target price to 35 times Mar’27 estimates. Reiterate Buy with a target price of Rs 360.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.