CLSA has maintained an Outperform rating on Bharat Electronics Ltd (BEL) with a target price of ₹400, indicating a modest upside from the current market price of ₹391.00.
The brokerage highlighted that margins continue to outperform, with Q1FY26 EBITDA margin rising 576 basis points YoY, well above the company’s 27% guidance. BEL has also posted a robust 29% year-to-date growth in new orders.
CLSA sees strong tailwinds ahead as the government fast-tracks defence spending under the ‘Make in India’ push, with BEL poised for $7 billion in order wins over the next 12 months, equivalent to 84% of its current backlog. FY26 inflows are guided to rise 44% year-on-year, indicating continued growth momentum.
Disclaimer: This article is based on CLSA’s brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
