Bharat Electronics: Deal boosts outlook

COMPANY IS POISED TO GET NEXT-GEN WARFARE ORDERS

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BHARAT ELECTRONICS LTD (BEL) has secured a landmark order worth ₹30,000 crore from the Indian Army for the quick reaction surface-to-air missile (QRSAM) system, now officially named 'Anant Shastra.' The brokerage firm tracking the stock maintains a “Buy” rating, with a 12-24 month target price of ₹490 apiece, based on 45 times estimated earnings for September 2027.

We project Bharat Electronics to achieve a CAGR of 18% in sales and 17% in Ebitda and net profit over fiscal years 2025 to 2028. The company's free cash flows are forecast to remain robust, supported by tight working capital management. As of fiscal 2025, the company reported a cash surplus of ₹9,400 crore, which could be deployed toward capacity expansion and new development programmes.

The potential risks to the outlook include slower-than-expected order inflows, execution delays, intensifying competition from private-sector defence firms, input cost inflation, and delayed payments from them-Ministry of Defence.