Morgan Stanley has maintained an ‘Overweight’ rating on Bharat Electronics Ltd (BEL) with a target price of ₹364, even as FY25 order inflows fell 47% YoY to ₹187.2 billion, significantly below the estimate of ₹250 billion. The order book at year-end also saw a 6% decline to ₹716.5 billion.
Despite the muted order inflows, BEL’s full-year revenue grew 16% YoY to ₹230 billion, supported by a 14% YoY rise in export revenue, which touched US$106 million. However, Q4 revenues grew only 3% YoY and missed estimates by 5%.
Morgan Stanley remains optimistic about BEL’s long-term prospects in India’s growing defense manufacturing space and believes that continued execution and export pipeline recovery could drive valuation upside.
