CLSA raised its price target for Bharat Electronics by nearly 32 percent.
Shares of Bharat Electronics surged 5.5 percent to hit a 52-week high of Rs 184.50 on December 26, after the company bagged orders worth Rs 678 crore.
At 2.45pm, the stock of Bharat Electronics was trading 4.2 percent higher at Rs 282.20 on the National Stock Exchange.
Out of the total, Rs 445 crore belonged to a contract with the Uttar Pradesh government for the next-generation UP Dial 112 project. Under the contract, the company will provide hardware, AI-based software tools and cyber security solutions for the project, spread across the state.
The company also received additional orders worth Rs 233 crore for communication display units, thermal imaging cameras and miscellaneous spares and services.
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BEL’s order book stands at Rs 26,613 crore for FY24 so far. Brokerage firm CLSA is also bullish on the company’s strong order book as it has surpassed BEL’s FY24 order inflow guidance of Rs 20,000 crore.
The brokerage attributed the government’s decision to prepone orders under the ‘Make In India’ scheme for BEL’s strong order flows. “With the government accelerating defence orders, the company’s order backlog has passed the $9-billion mark, up 50 percent on-year,” CLSA said in a note.
To capture that CLSA raised its price target for the stock by nearly 32 percent to Rs 207, while retaining a ‘buy’ call on the stock. Not just that, the brokerage also raised its 2025-2026 EPS estimates by 5-7 percent.
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