Multibagger defence PSU bags additional orders worth ₹577 crore, stock gains over 8% in five sessions; Should you buy?

BEL Share Price: Bharat Electronics Ltd (BEL) has received additional orders worth ₹577 crore since February 20, 2025, bringing the defence public sector undertaking (PSU)'s total order book to over ₹13,000 crore for the current fiscal year 2024-25 (FY25). The multibagger defence PSU stock has risen over eight per cent in the last five sessions amid a volatile market.

The order updates come after the state-run defence undertaking announced on Wednesday that it had declared an interim dividend of ₹1.50 per share of Re 1 fully paid up (150 per cent) for FY25. The PSU has fixed March 11, 2025, as the record date for the purpose of payment of the interim dividend.

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Multibagger defence PSU BEL's order book

“The Navratna defence PSU, Bharat Electronics Limited (BEL), has secured additional orders worth Rs. 577 crore since the last disclosure on February 20, 2025,” said BEL in a regulatory filing to the stock exchanges on Thursday.

“Major orders include airborne electronic warfare products, an advanced composite communication system for submarine, doppler weather radar, train communication system, radar upgradation, spares, services, etc. With these, the total accumulated orders received by BEL during the current financial year stand at Rs.13,724 crore,” added BEL in its exchange filing.

BEL Q3 Results

BEL reported decent earnings growth during the December quarter of FY25, beating analysts’ estimates. The defence PSU major reported a net profit of ₹1,316.06 crore in the quarter ended December 2024, registering a growth of 47.33 per cent from ₹893.30 crore in the year-ago period. BEL's total order book stood at ₹71,100 crore at the end of the December quarter.

The defence PSU reported a 37 per cent growth in revenue from operations in Q3FY25, reaching ₹5,643 crore, compared to ₹4,120.10 crore in the year-ago period. In terms of operating profit, BEL's EBITDA increased 57.5 per cent to ₹1,653 crore from ₹1,072 crore, year-on-year (YoY), while the EBITDA margin expanded by 330 basis points (bps) YoY to 28.7 per cent.

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BEL Share Price Trend

On Thursday, shares of BEL opened at ₹276.70 against a previous close of ₹274.80 and rose 1.59 per cent to hit an intraday high of ₹281.10 and swung to an intraday low of ₹271.80. BEL shares settled 0.73 per cent lower at ₹272.80 apiece on the BSE. The defence PSU commands a market cap of ₹1,99,410.7 crore.

BEL's share price has gained 8.83 per cent in the last five sessions. However, amid the recent drawdown in the Indian stock market, the PSU stock has dropped 2.59 per cent in the last month, 12 per cent in the last three months, and 7.28 per cent on a year-to-date (YTD) basis. However, BEL shares have gained over 26 per cent in one year amid a sharp rally in defence counters and have delivered multibagger returns of 176 per cent in the past two years.

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BEL Share Price Brokerage View: Should you buy or sell?

According to the domestic brokerage Elara Securities, BEL witnessed a positive surprise in topline and profitability, led by the focused execution of a huge order book. The management has retained the FY25 inflow guidance, with record inflows of ₹45,000- ₹55,000 crore potentially in FY26. Elara reiterated a 'Buy' rating on the PSU stock and hiked the target price (TP) to ₹370.

“We raise FY25E EPS estimates by six per cent on strong Q3 and maintain FY26E EPS. We maintain Buy with a higher TP of ₹370 (from ₹345) on 40x December FY26E P/E, led by FY25E performance likely exceeding the guidance on sales and margins along with superior order visibility for FY26.”

“We remain positive on BHE – Robust long-term compounder in the Indian Defence industry with growing order book, margin improvement scope regarding product mix and continued product portfolio expansion,” added the brokerage.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.