Morgan Stanley has reiterated its ‘Overweight’ rating on Bharat Electronics Ltd (BEL), raising the target price to ₹418. The brokerage highlighted BEL’s execution edge, supply chain resilience, and robust order pipeline as key strengths.
In Q4FY25, BEL posted a 18.4% YoY growth in net profit, with margin improving to 30.8%. The company now targets 15–17.5% revenue CAGR over the next five years, followed by 20% growth thereafter.
Morgan Stanley noted BEL’s FY26 order inflow guidance at ₹27,000 crore (excluding QR-SAM), and expects the company’s 27% margin target to be comfortably achievable given current operating leverage. Compared to capital goods peers, BEL offers more consistent earnings and superior RoE, the note added.
Disclaimer: This article is based on the brokerage report by Morgan Stanley. It does not constitute investment advice.
