Defence stock to 'Buy': 56% returns in a year, still 24% upside ahead - Share price target
In its latest note, the brokerage maintained a ‘Buy’ rating on the stock and set a revised target price of Rs 530 per share over a 12-month horizon, signalling a potential upside of around 24% from current levels.
- Apr 7, 2026,
- Updated Apr 7, 2026 10:59 AM IST
The Bharat Electronics Ltd (BEL) shares have gained over 56% over the past one year. However, domestic brokerage firm ICICI Direct is expecting more upside on the defence electronics major stock.
On Tuesday, BEL shares were down 0.26% to Rs 426.10 in early trade on BSE, against its previous close of Rs 427.20 apiece. The broader picture remains green; the counter has gained 56% in a year, even though it has only moved up about 4% over the past six months.
ICICI Direct highlighted the company's improving execution, strong pipeline to drive growth ahead. At the close of March 2026, BEL’s order backlog stood at a staggering Rs 74,000 crore, which is roughly 2.7 times its FY26 revenue, it said noting “healthy revenue growth visibility over the next 2-3 years considering the steady execution.”
In its latest note, the brokerage maintained a ‘Buy’ rating on the stock and set a revised target price of Rs 530 per share over a 12-month horizon, signalling a potential upside of around 24% from current levels.
Meanwhile, the brokerage said the company's order inflow for FY26 hit Rs 30,000 crore, easily surpassing the management's earlier guidance of Rs 27,000 crore.
“Moreover, FY27E order inflows are expected to surpass Rs 50,000 crore, considering that large QRSAM contract (Rs 30,000 crore) is likely to be concluded in Q1FY27E,” ICICI Direct said.
“We believe that BEL is strongly positioned to capture this huge opportunity considering MoD’s push for greater indigenous content in large scale programs like aircrafts, warships, submarines, missiles, combat vehicles, unmanned ariel vehicles etc,” the brokerage said.
“We believe that BEL provides strong earnings visibility. We expect revenue & PAT CAGR at ~17% each over FY25-28E,” ICICI added.
The Bharat Electronics Ltd (BEL) shares have gained over 56% over the past one year. However, domestic brokerage firm ICICI Direct is expecting more upside on the defence electronics major stock.
On Tuesday, BEL shares were down 0.26% to Rs 426.10 in early trade on BSE, against its previous close of Rs 427.20 apiece. The broader picture remains green; the counter has gained 56% in a year, even though it has only moved up about 4% over the past six months.
ICICI Direct highlighted the company's improving execution, strong pipeline to drive growth ahead. At the close of March 2026, BEL’s order backlog stood at a staggering Rs 74,000 crore, which is roughly 2.7 times its FY26 revenue, it said noting “healthy revenue growth visibility over the next 2-3 years considering the steady execution.”
In its latest note, the brokerage maintained a ‘Buy’ rating on the stock and set a revised target price of Rs 530 per share over a 12-month horizon, signalling a potential upside of around 24% from current levels.
Meanwhile, the brokerage said the company's order inflow for FY26 hit Rs 30,000 crore, easily surpassing the management's earlier guidance of Rs 27,000 crore.
“Moreover, FY27E order inflows are expected to surpass Rs 50,000 crore, considering that large QRSAM contract (Rs 30,000 crore) is likely to be concluded in Q1FY27E,” ICICI Direct said.
“We believe that BEL is strongly positioned to capture this huge opportunity considering MoD’s push for greater indigenous content in large scale programs like aircrafts, warships, submarines, missiles, combat vehicles, unmanned ariel vehicles etc,” the brokerage said.
“We believe that BEL provides strong earnings visibility. We expect revenue & PAT CAGR at ~17% each over FY25-28E,” ICICI added.