Why Shares Of Bharat Electronics Are Gaining Today

Shares of Bharat Electronics (BEL) after the company secured orders worth ₹2,673 crore from Goa Shipyard and Garden Reach Shipbuilders & Engineers.

Details Of The Orders: The order value from Goa Shipyard is ₹1,701 crore and that from Garden Reach Shipbuilders & Engineers is ₹972 crore.

These orders are for the supply of 14 types of sensors for use on next generation offshore patrol vessels (NGOPV). The participation of electronics and associated industries, including MSMEs, as sub-vendors of BEL is expected due to this order.

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Additionally, the company secured orders worth ₹86.15 crore since the last disclosure on December 15, focusing on miscellaneous spares and services. With these developments, BEL has amassed cumulative orders worth ₹25,935.15 crore in this financial year.

Analysts’ Thoughts: In December, brokerage firm UBS raised the target price on BEL’s stock to ₹205. Given their preference for state-owned defense enterprises, UBS analysts remain optimistic about Bharat Electronics (BEL), citing improving earnings growth visibility and an expanding order pipeline as justifications for the premium valuation.

The brokerage also acknowledged potential upgrades related to new orders over the next three to five years and export opportunities.

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