Rs 31 to Rs 421: Rs 1 trillion order book, multibagger returns from defence stock; more upside ahead?

Shares of Bharat Electronics Ltd (BEL) have clocked multibagger returns in five years. The defence stock with order book of over Rs 1 lakh crore delivered 1,266% returns during the period. Compared to the close of Rs 30.82 on October 23, 2020, the stock was trading at Rs 421 in the afternoon session today. 

Domestic brokerage Motilal Oswal has a price target of Rs 490 on the BEL stock. The Indian army's tender worth Rs 30,000 crore for 'Anant Shastra' project, with BEL as its lead integrator, boosts its order book beyond Rs 1 lakh crore and underscores its leadership in strategic defence programmes, said the brokerage. 

"Positioned strongly under the TPCR 2025 roadmap, it is set to benefit from sustained opportunities across the Army, Navy, and Air Force. BEL offers robust long-term growth visibility, making it a compelling investment in India’s defence modernisation journey," it added.

Meanwhile, BEL stock was trading at Rs 421.50 today. Market cap of the firm stood at Rs 3.07 lakh crore. BEL stock has clocked multibagger returns of 218% in two years and 301% in three years. 

Choice Broking has a price target of Rs 500 on the defence stock. 

Brokerage Nuvama has a price target of Rs 465 on the defence stock. It has projected 16 per cent EPS CAGR over FY25–28E, with 26 per cent return on equity (RoE) and 43 times FY27E P/E. 

In terms of technicals, the relative strength index (RSI) of BEL stock stands at 62.4, signaling it's trading neither in the overbought nor in the oversold zone. BEL shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. 

BEL announced a 25% YoY increase in net profit to Rs 969.13 cr in Q1 against a profit after tax (PAT) of Rs 776.14 cr recorded in the corresponding period of the previous year. 

Bharat Electronics manufactures and supplies electronic equipment and systems to defence sector.