Bharat Electronics Ltd (BEL) Shares Surge 9%, Analysts Raise Price Targets Following Strong Q4 Results

Shares of Bharat Electronics Ltd (BEL) soared over 9% on Tuesday to hit a fresh 52-week high on the Bombay Stock Exchange (BSE), surpassing its previous peak. This surge was a direct result of the company’s robust performance in the fourth quarter.

Following the stellar Q4 results, Jefferies has maintained a ‘buy’ rating on Bharat Electronics and hiked the target price to Rs 305 per share, indicating an 18% upside potential from the previous close. The brokerage emphasized that BEL’s EBITDA was a remarkable 30% higher than expectations.

Morgan Stanley has also stuck to an overweight rating, bumping up their target price to Rs 300 per share from Rs 263. Nomura, too, remains bullish on BEL with a target of Rs 300 per share.

Key industry players like Macquarie have retained an ‘outperform’ stance on BEL with a target price of Rs 280 per share, showcasing confidence in the stock’s trajectory.

Bharat Electronics Ltd has recommended a final dividend of Rs 0.80 per equity share for the financial year 2023-24, awaiting shareholder approval at the upcoming Annual General Meeting (AGM).

The company’s consolidated net profit for the March quarter jumped by 30% to reach Rs 1,796 crore, compared to Rs 1,382 crore in the corresponding period last year. BEL’s revenue from operations also witnessed a significant uptick, standing at Rs 8,564.08 crore, a 32% surge from the previous year.

The positive market sentiment around BEL can be attributed to its strong financial performance and strategic initiatives, as outlined by leading brokerage firms like Jefferies, Morgan Stanley, Nomura, and Macquarie. The future outlook for Bharat Electronics Ltd appears promising, driven by its consistent growth trajectory and market dominance.