Bharat Electronics Ltd (BEL), a leading defense public sector undertaking (PSU), saw its stock jump over 2% on Monday after global brokerage Jefferies raised its target price to ₹325. The rise in BEL’s share price comes as the company is expected to receive ₹11,300 crore in new orders, helping it meet its FY25 order inflow target.
The recent surge in global defense spending, driven by geopolitical tensions and increased government allocations, is seen as a major growth trigger for BEL. With a strong pipeline of defense projects and consistent order wins, the stock is attracting the attention of both retail and institutional investors.
Overview of Contents
Why BEL Stock Gains 2%
Several top brokerage firms remain positive on BEL, highlighting its strong fundamentals and steady order inflows.
- Jefferies raised its target price to ₹325, citing higher defense spending as a key factor.
- JPMorgan maintained its ‘Overweight’ rating with a target price of ₹343, viewing BEL as a structural growth opportunity.
- Antique Stock Broking assigned a ‘Buy’ rating with a target price of ₹376, calling BEL one of the most consistent performers in the defense sector.
According to Antique Stock Broking, BEL has delivered solid financial performance over the last 10 years (FY14-FY24), with:
✔ Revenue CAGR: 12%
✔ EBITDA CAGR: 19%
✔ Net Profit CAGR: 16%
✔ Order inflow CAGR: 24%
With an order backlog of ₹76,000 crore, BEL has strong revenue visibility, making it a safe bet for long-term investors.
Upcoming Defense Orders to Boost Growth
BEL has guided for ₹25,000 crore in order inflows for FY25, but the real boost is expected in FY26, with several big-ticket defense deals in the pipeline:
🔹 Quick Reaction Surface-to-Air Missile (QRSAM): ₹25,000-30,000 crore
🔹 Next-generation Corvette / MRSAM: ₹15,000 crore
🔹 Regular base orders: ₹15,000 crore
By FY26-27, BEL expects annualized order inflows to cross ₹40,000 crore, backed by key defense projects such as:
✔ Long-range radars
✔ BMP upgrade orders
✔ Electronic warfare systems
With a steady flow of defense contracts, BEL is well-positioned to maintain its market leadership in the defense electronics sector.
Stock Performance & Dividend Payout
BEL’s share price has seen a strong recovery in March 2025, rising over 15% from ₹246.25 to ₹282.34.
Key stock performance highlights:
📈 1-month gain: +15%
📈 1-year gain: +30%
📈 5-year gain: Over 1,000%
Additionally, BEL has declared an interim dividend, with March 11 set as the record date. Eligible shareholders will receive the dividend within 30 days of its declaration.
“In terms of SEBI regulations, we have fixed March 11, 2025, as the record date for the interim dividend payout,” BEL stated in a stock exchange filing.
With a dividend yield of 0.53%, BEL offers stable returns along with capital appreciation, making it a preferred stock for investors seeking both growth and income.
Should You Invest in BEL?
BEL remains a top-performing PSU stock with:
✅ Strong order visibility (₹76,000 crore backlog)
✅ Consistent revenue and profit growth
✅ Bullish analyst ratings from top brokerage firms
✅ Attractive valuations after recent market correction
With increasing government defense spending, strong execution capabilities, and a robust order pipeline, BEL is well-positioned for long-term growth.
For investors looking to add a quality defense stock to their portfolio, BEL presents a solid buying opportunity, especially after the recent correction.