Bharat Electronics shares slip 7% from record high levels; here's what analysts say

Shares of Bharat Electronics Ltd (BEL) slipped 0.69 per cent in Wednesday's trade to hit a low of Rs 315.80. At this price, the stock has fallen 7.21 per cent from its all-time high value of Rs 340.35, a level seen earlier this month on July 10. Despite the mentioned drop, the scrip has gained over 70 per cent on a year-to-date (YTD) basis.

On the earnings front, the defence PSU reported a 46.17 per cent year-on-year (YoY) rise in its net profit at Rs 776.14 crore for the quarter ended on June 30, 2024 (Q1 FY25). The Navratna PSU's revenue from operations was up 19.6 per cent YoY at Rs 4,199 crore.

During the quarter under review, the state-run defence player's order book stood at Rs 76,705 crore. EBITDA, or earnings before interest, taxes, depreciation, and amortisation, jumped 41 per cent YoY to Rs 937 crore in Q1 FY25.

Analysts largely remained positive on the counter over the medium- to long-term period.

"BEL has been on our 'Buy' list from the fundamental side. The company's numbers and order book looked exciting from a long-term view," Gaurang Shah, Senior VP at Geojit Financial told Business Today TV.

"The company has come up with a strong set of numbers. The order book pipeline and earnings visibility looked robust. Those holding can continue with their positions. Investors with a medium- to long-term view can add this stock on dips," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Technically, support for BEL's stock could be seen in the Rs 310-295 zone.

"Support can be seen around the Rs 300-295-odd range. While on the higher end, a fresh round of rally could be seen only above Rs 338-340 levels in the comparable period," Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

Support will be at Rs 310 level and resistance at Rs 327, suggested Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers. "A decisive close above Rs 327 level may trigger a further upside towards Rs 340. The expected trading range will be between Rs 305 and Rs 345 for the short-term," Patel mentioned.

One can buy BEL shares around Rs 310 for an upside target price of Rs 335, said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. Keep a strict stop loss placed at Rs 305 for this trade, Singh added.

As of June 2024, the government held a 51.14 per cent stake in the defence PSU.