Morgan Stanley has reiterated its Overweight rating on Bharat Electronics Limited (BEL) with a target price of ₹364, implying a potential upside of 35% from the current market price of ₹269.85. The brokerage anticipates a 15% revenue growth for FY25, with order inflows expected to reach ₹250 billion and a gross margin of 42%, slightly lower than the 45% seen in the first half due to product mix.
BEL is targeting an EBITDA margin of 23-25%, with capex spending of ₹8 billion and R&D investments exceeding ₹13 billion. Looking ahead, BEL remains confident in maintaining a 15% revenue compound annual growth rate (CAGR) over the next five years, with potential to increase this to 17.5%. The company’s order inflow prospects are robust, with a base of ₹150-200 billion expected in new orders.
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.
