Nirmal Bang upgrades Bharat Electronics shares; JM & Macquarie remain positive on stock
Bharat Electronics Q3 results: Nirmal Bang Institutional Equities has given Bharat Electronics an upgrade after reviewing its December 2024 quarter results.
Nirmal Bang upgrades Bharat Electronics shares; JM & Macquarie remain positive on stock
Following its December 2024 BEL Q3 results which demonstrated strong earnings and a solid order book along with positive company management guidance and reasonable valuation corrections Nirmal Bang Institutional Equities raised its rating for Bharat Electronics.
Nirmal Bang stated that key performance metrics exceeded expectations along with critical defence and civilian projects being executed during the quarter. The company emphasized its expansion into non-defense business areas. According to the findings, the orderbook is forecasted to grow by 1.4 per cent in FY25 while the book to bill ratio will decrease to 3.2 from last year's 3.7.
Management estimates FY25 to achieve a double-digit growth rate of 15 per cent alongside gross margins of 40-42 per cent and Ebitda margins of 23-25 per cent.
Our analysis indicates BEL will surpass its FY25 guidance due to an improved product mix along with no supply chain disruptions. The stock's 1-year forward P/E ratio stands at 29.9 times which surpasses its 5-year average P/E ratio of 19.3 times. The stock price has decreased from its highest point over the last 52 weeks. Nirmal Bang announced an upgrade of the stock status to 'buy' from 'hold' and set a target price at Rs 326.
Bharat Electronics shares target exceeded analyst expectations and showed year-over-year growth across all financial parameters.
The overseas brokerage indicated that BEL stock price continue alongside the potential for submarine component orders as significant new business opportunities. BEL expects to secure large-value orders amounting to Rs 25,000-26,000 crore during FY26. Macquarie assigns an 'outperform' rating to BEL with a target price set at Rs 350.
Bharat Electronics share price were up by 3.5 percent to Rs 288.60 this Friday. The reason for the rise was because the company was able to reach a market cap of 2.1 lakh crore. The stock ended at Rs 278.90 in yesterday's trading session. It is still 15% below the top price of Rs 340.35, that it hit in July last year.
