BEL shares: SBI Securities sees 14% upside potential; here's why

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Shares of Bharat Electronics Ltd (BEL) rose 0.48 per cent to settle at Rs 295.10 on Thursday. SBI Securities has given a 'Buy' call for BEL shares with a target price of Rs 337, suggesting a potential upside of 14.20 per cent from today's closing level.

The brokerage said BEL secured orders worth Rs 18,715 crore during FY25, taking the total order book to Rs 71,650 crore (as of April 1, 2025) with some major orders such as BMP II Upgrade, Ashwini Radar, Software Defined Radios, etc, along with other projects in the non-defence segment.

"Despite missing out on its order inflow guidance of Rs 25,000 crore for FY25, the company achieved an annual turnover of Rs 23,000 crore compared to Rs 19,820 crore in FY24, marking a sturdy growth of 16 per cent against its guidance of 15 per cent," it also stated.

"The company expects two large orders to get finalised in FY26; 1) QRSAM project order with a targeted value of Rs 25,000 crore – Rs 30,000 crore and MRSAM package order worth Rs 15,000 crore. In a view to try and sustain the momentum, BEL has concluded negotiations with its customers for the acquisition of orders worth Rs 5,000 crore and has also received major orders from the Indian Air Force for the supply of EW Suite for Mi 17 V5 Helicopters and maintenance services for the Akash Missile System," SBI Sec added.

"Non-defence segment contributes around 10-11 per cent (8 per cent non-defence, 3 per cent export) to revenue. The management aims to increase its non-defence revenue to 20-25 per cent over the next 5 years, focusing on cybersecurity, homeland security and telecom projects," the brokerage further stated.

SBI Sec mentioned that BEL is well-positioned to secure a significant share of orders for radar systems, TR modules, EW systems and other critical subsystems.

BEL has a price-to-equity (P/E) ratio of 43.46 against a price-to-book (P/B) value of 12.40. Earnings per share (EPS) stood at 6.79 with a return on equity (RoE) of 28.55. As of March 2025, promoters held a 51.14 per cent stake in the state-run defence player.