Bharat Electronics Share Price Target: UBS Assigns Buy with Rs 257 Target

Bharat Electronics Share Price Target

Bharat Electronic Limited’s shares have been rated as a “buy” by investment banking institution UBS. According to the 6 March 2024 report, it assigned a 22 percent upside target price for the stock, which is Rs 257 per share.

Bharat Electronics Share Price Target

Metric Value
Share Price Target Rs 257
Current Share Price Rs 190.00
Potential Upside 35.26%
52-Week High Rs 216.70
52-Week Low Rs 89.68
P/E Ratio 41.47

Bharat Electronics Limited, a Navratna under the Indian Ministry of Defense, creates electronic machines and equipment for satellite communication, defense, aircraft, and aerospace industries, including avionics, radars, weapon systems, and gun upgrades. These are some of the company’s basic offerings of products.

Navratna Multibagger PSU Bharat Electronics Ltd (BEL) shares have a new target price and a buy call assigned by renowned international brokerage company UBS. The global brokerage business has increased its target price to Rs 257 per share from the previous Rs 205 in response to increased orders for the financial year 2024. 

The share price of Bharat Electronics is currently trading at Rs 190.00 on the BSE, with an intraday decline of 7.02%. A potential gain of 35.26% is available if you purchase Bharat Electronics stock.

In the last year, BEL shares returned an astounding 105%, and in the last three years, they have skyrocketed 307%. A meeting of BEL’s Board of Directors is planned for March 15, 2024, to discuss the company’s second interim dividend. The market value of BEL is Rs 1,38,885.80 crore.

Bharat Electronics Share Price Target

Reliability & Return of Bharat Electronics Shares: 

Bharat Electronics shares are trading at a 52-week high of Rs 216.70 per share on the BSE and a 52-week low of Rs 89.68 per share. BEL’s PE is 41.47 and its ROE is 24.75. 4.93 is its EPS (TTM). 

The BEL stock returned 40 percent during the previous six months, 166% during the previous two years, and 510% during the previous five years. The last ten years have seen a huge 1788% rise in shares of Bharat Electronics.

 Credit rating agency ICRA maintained PSU’s long-term rating at ‘[ICRA] AAA’ with a stable ‘outlook’ earlier this year, on February 21. The organization’s short-term rating of ICRA] ICRA also confirmed A1+.

When can you expect the meeting about the declaration of the second interim dividend?

Bharat Electronics Limited (BEL), a prominent defense PSU, is anticipated to declare its second interim dividend during a board meeting scheduled for March 15, 2024. The company has already set March 23 as the record date to determine shareholders’ eligibility for this dividend if it is announced. 

Previously, BEL announced an interim dividend of ₹0.701.According to the company’s regulatory filing dated March 7, 2024.

According to Rules 29 of the SEBI Regulations, 2015, we want to let you know that a special meeting of the Board of Directors of the Company is planned to be organized on Friday, the 15fh March 2024 to discuss, among other things, the proclamation of second interim dividend for the financial year 2024.

Assessment of Bharat Electronics by UBS

Given stronger profits or new orders growth, we lift our target price to Rs 257 and maintain Buy, allocating a 35 times PE to March 2026 earnings instead of 30 percent previously, and factoring in a lower 10% discount to industrial rivals in contrast to 25 percent 10-year average.

Last but not least, Bharat Electronics’ portion of the nomination business, which guarantees a fixed cost plus markup and still contributes significantly to the company’s income, is critical to the company’s profit trajectory. 

Over the previous two years, investors have grown increasingly concerned about slower order book expansion.UBS noted that it believes an excess of Rs 10,000 crore in orders reserved over sales, or accretion, in FY24E will lead to an upward adjustment in the top line compared to consensus projections of 14% revenue growth in FY25 and FY26.

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