BEL Erases Early Losses To Climb 2% As Upbeat Outlook Boosts Stock

Shares of Bharat Electronics Ltd (BEL) recouped early losses to trade higher on Wednesday after the firm said it was targetting a lofty export target.

What Happened: The aerospace and defence electronics firm set a full-year export turnover target of nearly $110 million (₹915.6 crore). BEL also aims for double-digit revenue growth of 15% in FY25 and an EBITDA margin of 23-25%.

In a conference call on May 22, the state-run company said it expects to secure large-size orders worth ₹15,000 crore and projects order acquisitions totalling ₹25,000 crore for FY25. BEL, which supplies electronic equipment and systems to the defence sector, also anticipates another export order worth over $200 million (₹1664.7 crore).

BEL reported a robust fourth-quarter performance on Monday, with a 30% year-on-year increase in its bottom line and a 32% rise in revenue from operations.

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Analyst View: Brokerage Motilal Oswal remains bullish on BEL, expecting its revenue market share to stay high at around 12-13%. The brokerage highlights BEL’s efforts to increase the share of exports and non-defence revenue, reducing its dependence on the domestic defence sector.

Morgan Stanley has maintained an “overweight” rating with a target of ₹300, raised from ₹263 earlier as it expects some operational efficiencies to remain sticky. The brokerage has raised EBITDA margin estimates to 24-24.5%.

Nomura too has continued with a “buy” call with a target of ₹300 apiece, highlighting that earnings beat led by strong margins and an order backlog at ₹75,900 crore.

Price Action: BEL’s share price was up 1.97% at ₹279.55 in afternoon trade on Wednesday.

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