BEL Share Price: Rs 75934 cr order backlog! Book profit or HOLD PSU defence stock till Budget 2024?

Authored by : Abhinav Ranjan Updated Jul 13, 2024 10:45 IST BEL shares are in focus ahead of the Budget 2024. The PSU defence stock has more than doubled investors money in 1 year. (Pic: bel-india.in/ET NOW)

Bharat Electronics Share Price , BEL Share Price Target 2024: Bharat Electronics Limited ( BEL ), a PSU defence company, is in focus ahead of the Budget 2024, slated to be presented in the Parliament on July 23. The PSU defene stock is one of the top performers from the defence sector, yielding multibagger returns consistently to the investors over the last few years.

On June 4 -- the day Lok Sabha Election 2024 result was announced, BEL shares logged its one of worst trading sessions in the recent years as the defence stock crashed 20 per cent to hit the lower circuit at Rs 230.5. However, with the NDA government led by Narendra Modi storming to the power for a third consecutive term, the stock staged a sharply recovery and is hitting back-to-back fresh highs.

As per analytics, BEL shares have experienced a notable rally from June 4 lows, reflecting positive investor sentiment in the counter and also strong market performance. The PSU defence stock has rallied a whopping 47 per cent from June 4 lows.

Budget 2024 Stock To Buy

The counter remains in focus ahead of the Budget as investors anticipate some major announcements by the government for the defence sector. Just ahead of the Budget, Siddhartha Khemka of Motilal Oswal Financial Services Limited (MOFSL) has recommended buying BEL shares. He said that BEL is his top Budget pick as he expects the government to remain focused on the defense sector and increase the allocation.

BEL Share Price Target 2024

He said that the earnings growth of Bharat Electronics is expected to rise at the rate of 20 per cent in the next two years. The target for BEL shares, he said, is Rs 380.

BEL Order Book

On Friday, BEL announced that it has obtained an export order worth Euro 25.75 million (estimated value of Rs 230 crores) from Thales Reliance Defence Systems (TRDS) for the manufacture and supply of transmit-receive (TR) modules. The TR modules will be used in the radars of fighter aircraft. Additionally, BEL has secured orders valued at Rs 192 crores following the last disclosure on June 28.

With these, BEL has now accumulated orders totalling Rs 5,225 crores in the current financial year. In FY 2024, BEL's order inflow stood at around Rs 35,000 crore.

ICICI Securities said that BEL is favourably positioned to capture the larger pie of huge opportunity in the Indian defence and space electronics systems/sub-systems or components industry. The industry is expected to clock 13-14 per cent CAGR over FY22-27.

"Current order backlog of Rs 75,934 crore, provides healthy revenue growth visibility. Order pipeline remains robust in defence electronics for various platforms, non-defence and exports," the brokerage said in a note on BEL.

BEL Share Price History

BEL falls under the administrative control of the Ministry of Defence. The Bengaluru headquartered company manufactures advanced electronics products for defence and non-defence platforms.

As per analytics, BEL shares have delivered an impressive return of 75 per cent in the last six months and a multibagger return of 161 per cent in a year. In two and three years, BEL shares have sprinted 330 per cent and 444 per cent, respectively. The defence stock has made its investors wealthier by an astonishing 844 per cent in the last five years.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)