Nomura has reiterated its Buy rating on Bharat Electronics Limited (BEL), setting a target price of ₹363, indicating a potential upside from the recent market price of ₹269.85. While earnings forecasts remain unchanged, Nomura adjusted its margin estimates upward, offset by a reduction in non-operating income.
Management has provided a positive outlook on upcoming orders, anticipating a base order inflow of ₹150-200 billion annually, including annual maintenance contracts and spare parts. Key anticipated orders include a significant quick reaction surface-to-air missile (QRSAM) contract valued between ₹250-300 billion, along with multiple derivative orders for radars, electronic warfare, communications, and missile systems for naval and aerospace platforms. Management remains confident in achieving at least a 15% compound annual growth rate (CAGR) in execution over the next five years.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to perform their due diligence before making investment decisions.
