BEL’s order book has surged to ₹7,689 crore this fiscal, driven by new contracts, with a target of ₹25,000 crore in FY25 as international brokerages remain bullish on the stock.

Since joining the Nifty50 index on September 30, BEL share price has experienced continuous declines, with no single day of gains.

Shares of Bharat Electronics (BEL) are in focus on October 8 as the Navaratna defence PSU bagged orders worth more than ₹500 crore since its last announcement on September 11.

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.

BEL’s order book for the current financial year has surged to ₹7,689 crore, thanks to new contracts. The company is aiming for a strong order inflow of ₹25,000 crore in FY25. As of its September 11 update, BEL had secured ₹7,075 crore worth of orders, including ₹1,155 crore from recent wins.

International brokerage Macquarie has maintained its ‘outperform’ recommendation on BEL with a price target of ₹350, which implies a potential upside of 26 percent from previous closing price. The stock currently trading 18 percent below its recent peak of ₹340.

All eyes would be on the quantum of orders that BEL manages to secure in the second half of the current financial year, said Macquarie in its note. While the current order inflows are lagging so far this year, it is not a cause for concern, it added.

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.

Agencies