Buy This Multibagger Large Cap Navratna Stock For Target Price Of Rs 360, Gave 215.4% In 3 years
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Stock outlook
The current market price of Bharat Electronics’ stock is Rs 324.55 apiece. The 52-week low is Rs 183.45 apiece and the 52-week high is Rs 329.70 apiece, respectively. According to the brokerage’s estimated target price, the stock of the company has the potential to gain 11% in 12 months if stock is purchased at the Current Market Price.
Returns on investment
It has given a positive return of 6.29% in a week. It has given a 40.75% positive return in a month, and 32.07% in the 3 months, respectively. In the past 1 year, it has given a positive return of 70.68%. It gave a multibagger return of 215.4% in the past 3 years. In the past 5 years, it gave 84.07%.
Key highlights
• BEL, one of India’s largest defence public sector undertakings (PSU), specialises in manufacturing defence electronics. It is emerging as a key beneficiary of increase in defence capital expenditure.
• Rising local player allocation, GoIs focus on exports in defence are material growth tailwinds for the company. Also, with structural need to ensure higher systems availability and many more surface to missile (SAMs) system requirements, BELs order intake visibility remains high with limited headroom for competition.
• With strong order book in hand and parallel execution capability for multiple platforms, BEL has a strong P/L growth visibility.
• We expect BEL’s top-line growth to improve for FY23E-24E, given better new order growth in past two years & normalisation in supply chain.
Risks
- Delay/lumpiness in execution / awarding of defence contracts
- Increased competition from private players
- Changes in government policy
Bharat Electronics Business Overview
Established by Government of India under the Ministry of Defence in 1954 to meet the specialised electronic needs of the Indian defence services, Bharat Electronics (BEL) has grown into a multi-product, multitechnology and multi-unit company, serving the needs of customers in diverse fields in India and abroad. BEL offers products and services in a wide spectrum of technology like radars, military communications, naval systems, electronic warfare systems, telecommunications, sound & vision broadcasting, opto-electronics, tank electronics, solar photovoltaic systems, embedded software & electronic components.
