JPMorgan has maintained an ‘overweight’ rating on Bharat Electronics (BEL), citing structural growth in India’s defence capital expenditure as a key driver. The brokerage has set a target price of ₹343 per share, indicating a 25.9% upside from the current market price (CMP) of ₹272.50.
JPMorgan highlighted that BEL has corrected 20% from its peak, presenting a good entry opportunity given its diversified exposure and consistent performance in the defence sector.
The firm projects BEL’s revenue, EBITDA, and PAT to grow at a CAGR of 15%, 17%, and 16% respectively for FY24-27, while maintaining an average ROE of over 25%. The stock is currently trading at a P/E of 36x for FY26 and 31x for FY27.
A key near-term catalyst for BEL could be the potential announcement of ₹120 billion worth of new orders by March 31, which could positively impact the stock price.
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