Navaratna defence PSU Bharat Electronics Ltd (BEL) on Monday (October 7) said it has secured additional orders worth more than ₹500 crore since its last announcement on September 11, 2024.
The new contracts include EMI (electromagnetic interference) shelters, annual maintenance contracts for integrated air command and control system nodes, upgrades and spares for gun systems, radar spares, and communication systems. With these new orders, BEL’s total order book for the current financial year has reached ₹7,689 crore.
“The major orders received include EMI shelters, AMC for Integrated Air Command and Control system nodes, upgrade/spares for gun systems, spares for radars, communication system etc. With these orders, BEL has now accumulated orders totalling ₹7,689 crore in the current financial year,” the company said in a stock exchange filing.
Since joining the Nifty50 last Monday (September 30), BEL has experienced continuous declines, with no single day of gains. BEL has projected a robust order inflow for FY25, setting a target of ₹25,000 crore.
Macquarie has maintained its ‘outperform’ recommendation on BEL with a price target of ₹350, which implies a potential upside of 20% from Tuesday’s (October 1) closing levels. The stock is currently 15% below its recent peak of ₹340.
BEL also expects its order inflow to be around ₹25,000 crore for the financial year. As per its last update shared on September 11 this year, when the company had won orders worth ₹1,155 crore, BEL’s total order inflow for financial year 2025 stood at ₹7,075 crore.
Macquarie wrote in its note that all eyes would be on the quantum of orders that BEL manages to secure in the second half of the current financial year. It said while the current order inflows are lagging so far this year, it is not a cause for concern.
While BEL’s order backlog will continue to support its growth trends, the supply chain remains a key monitorable for the company, Macquarie said. The brokerage is seeking clarity on three important aspects from BEL post its September quarter results, which can be key catalysts to drive the stock higher, going forward.
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