BEL share price hits record high, up over 38% in three months. Is more steam left in this defence stock?

Shares of Bharat Electronics Ltd (BEL) touched a record high at ₹426.65 apiece on the BSE on Tuesday's session. The BEL share price has risen for the third straight session today. According to the weekly charts, BEL share price has been on a bull run since last 10 weeks. BEL share price has gained over 38% in the span of three months.

This upbeat sentiment surrounding the defence stock in the last few sessions follow the company's recent announcement of securing new orders valued at ₹585 crore.

In an exchange filing, the company indicated that significant orders secured comprise fire control and targeting systems for missiles, communication devices, jammers, spare parts, and support services, among others.

InCred Equities has reported that BEL possesses an order book of ₹0.7 trillion, with anticipated orders of ₹0.57 trillion by FY26F, including the ₹0.3 trillion QRSAM contract, which bolsters revenue assurance.

Operation Sindoor demonstrated its technological capabilities, increasing its global reputation and potential for exports. As a reliable partner of the government in defence electronics, BEL capitalises on India’s drive for indigenisation, with its order book expected to reach ₹1 trillion by FY26F.

“BEL’s proven execution and strategic edge make it a compelling buy, with a target price of ₹459, based on a 44× P/E applied to the forecasted FY27F EPS of ₹10.4,” InCred Equities said.

BEL share price

BEL share price today opened at ₹426 apiece on the BSE, the stock touched an intraday high of ₹426.65 per share and an intraday low of ₹415 per share.

Ruchit Jain, VP - Equity Technical Research, Motilal Oswal Financial Services said that the broader trend for the defence stock remains positive as it has been forming Higher Top Higher Bottom structure with good volumes. However, the short term momentum readings are in overbought zone and hence, we advise to keep a buy on dip approach. The immediate support is placed around its 20 DEMA at 394.

Sumeet Bagadia, Executive Director at Choice Broking said that a decisive close above the psychological resistance of ₹430 may pave the way for a swift rally toward the short-term target of ₹452. Traders are advised to monitor the price action closely around this resistance zone for signs of a confirmed breakout and trend continuation.

On the downside, immediate support lies at ₹411. The Relative Strength Index (RSI) is currently at 77.65 and continues to trend upward, indicating strong buying momentum. For prudent risk management, a stop-loss is recommended at ₹406 to safeguard against unexpected market volatility. In summary, BEL presents a technically strong buy setup, with a favourable risk-reward ratio and a near-term upside potential toward ₹452, backed by bullish indicators and market sentiment.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.