Sharekhan has given Buy recommendation for Bharat Electronics with a target price of Rs. 254 in its research report issued on Mar 14, 2022
Sharekhan’s research report on Bharat Electronics
The government’s emphasis on ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives in the defence sector provides strong growth opportunity for BEL as it is the leading indigenous aerospace and defence player. The current uncertain international (Russia-Ukraine war) as well as domestic (India-China border dispute) geopolitical scenario calls for strengthening of the national security, which should lead to significant rise in India’s defence expenditure going forward. This augurs well for BEL’s long-term growth.. BEL has also been focusing on exploring the export potential of defence electronics products and systems, which bodes well for revenue diversification. BEL targets 10-15% revenue contribution from exports.
We reiterate Buy on Bharat Electronic Limited (BEL) with an unchanged PT of Rs. 254, given its healthy order book of Rs. 56,568 crore, promising order inflow pipeline, and strong execution capabilities.
At 15:20 hrs Bharat Electronics was quoting at Rs 205.25, down Rs 4.40, or 2.10 percent.
It has touched an intraday high of Rs 209.95 and an intraday low of Rs 203.30.
It was trading with volumes of 172,652 shares, compared to its thirty day average of 405,415 shares, a decrease of -57.41 percent.
In the previous trading session, the share closed down 2.31 percent or Rs 4.95 at Rs 209.65.
The share touched its 52-week high Rs 227.95 and 52-week low Rs 115.90 on 12 November, 2021 and 25 March, 2021, respectively.
Currently, it is trading 9.96 percent below its 52-week high and 77.09 percent above its 52-week low.
Market capitalisation stands at Rs 50,011.07 crore.