In the world of stock trading, Bharat Electronics has recently captured investor attention with a notable surge. On Tuesday morning, shares of Bharat Electronics saw a remarkable increase of 3%, buoyed by the announcement of significant order wins totaling ₹500 Crore. This news has revitalized investor sentiment towards the company’s stock.
The trading day began for Bharat Electronics with shares opening at ₹266.90 on the BSE, which was slightly above the previous closing price of ₹267.35. Following this, the stock climbed further to reach ₹277.80, marking an impressive gain of 3% during the early trades.
Recent Performance and Multibagger Potential
Bharat Electronics has displayed resilience, recovering from a recent setback where its share price had fallen by 7% over the last five trading sessions. Despite being down 19% from its peak in July, the stock has provided investors with exceptional returns, boasting a remarkable 103% increase over the past year, categorizing it as a multibagger stock.
Substantial Order Gains
Bharat Electronics, a Navratna Defense Public Sector Undertaking, announced its recent order wins in a release after market hours on Monday. The company has secured new orders valued at over ₹500 Crore since their last disclosure on September 11, 2024, which is expected to enhance its financial outlook significantly.
Among the newly awarded contracts, key components include EMI shelters, AMC for Integrated Air Command and Control system nodes, upgrades, and spares for various gun systems, as well as radar and communication system spares. With these acquisitions, Bharat Electronics has already amassed an impressive order book totaling ₹7,689 Crore for the current fiscal year, positioning itself strongly within the defense sector.
This robust order backlog not only enhances Bharat Electronics’ current standing but also assures analysts of a positive outlook moving forward. Increased demand and a strong order book are critical indicators of the company’s prosperity.
Promising Earnings Forecast
Analysts from Prabhudas Lilladher Institutional Equities have expressed optimism regarding Bharat Electronics’ long-term earnings potential. They attribute this positive outlook to the company’s strong order backlog, diversification efforts into non-defense sectors, and an overall improvement in margin profiles. Projections indicate that the company may experience a compounded annual growth rate (CAGR) of 17.6% in revenue and 17.3% in adjusted net profit from FY24 to FY26. As a result, they have assigned an ‘Accumulate’ rating to the stock, with a target price of ₹341.
Disclaimer: The insights and recommendations provided above are the opinions of individual analysts or brokerage firms and do not represent the views of our publication. Investors are advised to consult with certified financial advisers before making any investment choices.
