Posted on March 13, 2025, by Niftynews
The Bharat Electronics share price saw a 2.65% rise on March 13, 2025, reaching an intraday high of ₹284.10. This positive momentum followed a ‘Buy’ recommendation from Nomura India, who set a target price of ₹363, suggesting a 27% upside from its current market price.
Nomura’s positive outlook on Bharat Electronics (BEL) is primarily based on the company’s strong Q4 order inflows, as well as the increased scope for defence spending over the coming years.
Bharat Electronics Q4 Order Inflows: A Strong Performance
In the March quarter, Bharat Electronics reported order inflows of ₹7,200 crore, marking a significant step towards the company’s FY25 targets. Although this is lower than the ₹9,800 crore achieved in the first three quarters of the fiscal year, the total order inflows for FY25 stood at ₹17,000 crore, a solid performance but slightly below the ₹25,000 crore annual guidance.
Nomura’s report highlights that Bharat Electronics (BEL) remains on track to meet its future order goals, particularly with multiple final-stage negotiations underway with key customers. This momentum in securing new contracts reflects Bharat Electronics’ strength in the defence sector and its reputation among global players.
Nomura’s Outlook on Bharat Electronics Share Price
Nomura’s research note points out that Bharat Electronics is well-positioned to secure continued strong order inflows through FY25 to FY27. The brokerage firm’s outlook is based on multiple defence deals in the pipeline, including large-scale missile defence systems and other key electronic warfare contracts. Some of the expected orders include:
- Quick Reaction Surface-to-Air Missile (QRSAM) and Medium Range Surface-to-Air Missile (MRSAM) orders, worth ₹25,000-30,000 crore.
- Additional radar, electronic warfare, and communications system contracts worth ₹8,000-10,000 crore.
Nomura expects Bharat Electronics to secure an impressive ₹85,000 crore in order inflows between FY25 and FY27, ensuring the company’s continued strong financial performance. Additionally, increased defence spending in Europe could offer new international growth opportunities for BEL, especially since the company has strong ties with major Original Equipment Manufacturers (OEMs).
Valuation of Bharat Electronics Share Price and Target
Nomura’s ‘Buy’ recommendation on Bharat Electronics shares is supported by the company’s reasonable valuations. Despite trading at 35x FY26 and 30x FY27 P/E ratios, BEL’s stock is viewed as fairly priced, particularly when compared to the three-year average P/E ratio of 29x. Nomura estimates a 19% compound annual growth rate (CAGR) for profit after tax (PAT) from FY24 to FY27, further reinforcing the positive growth outlook.
Nomura has set a target price of ₹363 for Bharat Electronics, suggesting 27% upside potential from its current market price. This bullish target is backed by the company’s strong order book and its dominance in the defence sector, particularly in areas related to missile systems, radar technologies, and electronic warfare solutions.
Why Bharat Electronics Shares Are a Strong Buy
After strong Q4 order inflows and a positive report from Nomura, the Bharat Electronics share price has been performing well, with the stock rising by 2.65% to ₹284.10. Nomura’s ‘Buy’ rating on BEL shares, along with a target price of ₹363, suggests that the stock has substantial growth potential in the long run.
Looking ahead, Bharat Electronics is set to benefit from mega defence contracts in the pipeline, as well as growing international demand driven by increased defence spending in Europe. With high-value orders expected to come in the next few years, Bharat Electronics shares are an attractive investment for those looking to capitalize on the growing defence sector.
Conclusion: Is Bharat Electronics Share a Good Investment?
With order inflows hitting ₹7,200 crore in the March quarter and strong growth prospects for FY25 to FY27, Bharat Electronics shares are in an excellent position for continued growth. As a leader in defence electronics, Bharat Electronics offers attractive opportunities for investors, especially with the 27% upside potential outlined by Nomura.
For those seeking long-term growth in the defence sector, Bharat Electronics shares are highly recommended.
