Bharat Electronics Limited’s (BEL) share price is rising as India’s Defence Ministry has announced to increase its budget by 18% in the financial year 2023-24. The Ministry of Defence has signed 10 contracts worth Rs 5,498 crore with BEL Company for the Indian Army.
In another report, BEL officials said that the Ministry of Defence has signed 2 contracts worth Rs 2,696 crore with the company. So, by announcements, the company is expected to generate better earnings in the coming years.
On the release of the Defence Ministry’s contract, BEL Company’s share price soared up to 5 per cent in the stock market. But, if we look at its past, the stock was trading at only Rs 43.73 in 2018. The current share price is given below.
The effect of this news in intraday touched a high of Rs 98.06 on BSE with a gain of 7.8 per cent. So, this is good news for investors, but the company hasn’t shown significant growth over the past few years. In this forecast, we will predict the share price of BEL for the years 2024, 2025, 2026, 2028 and 2030.
Bharat Electronics Limited (BEL) Overview
Bharat Electronics Limited (BEL) is an Indian government-owned aerospace and defence electronics company in India. It was established in 1954 and is headquartered in Bengaluru, Karnataka. The company is primarily involved in the design, development, manufacture and supply of a wide range of electronic products for Defence, Aerospace, Civil and Industrial applications.
Some of the products developed by BEL include radar, sonar, communication equipment, electronic warfare systems, missile systems, naval systems and avionics. The company also provides turnkey system solutions and provides support services for the products developed by it.
The company has many units across India and the employee strength is more than 9,612 (March 2019). It has partnerships with several global companies in the defence sector and is considered one of the top public sector companies in India.
Fundamentals of BEL
BEL Company has a strong presence in the Defence and Aerospace sectors. The Indian government’s thrust on self-reliance in the defence sector is likely to increase orders for BEL’s products and services. Therefore, this will have a positive impact on the financial performance of the company and its share price.
The company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India. The financial performance in recent years has been mixed and revenue decreased by 4.4%, compared to the previous year but, its net profit increased by 8.3%.
Others:
| Revenue (FY23) | ₹ 15,368 |
| Net Profit | ₹ 2,399 |
| Net Profit Margin | 15.61% |
| EPS | 3.73 |
| PE | 25.86 |
| ROE | 20.55% |
| Buy/Sell/Hold | Hold |
| Face Value | 1 |
BEL Share Price Target 2024 – 2030
Top analysts expect a target price of Rs 224 to Rs 260 for BEL shares in the next 2-3 years. However, the share price target is not guaranteed and the actual share price may differ from the target price.
The company has shown average performance and revenue growth of 10.73% year-on-year. In this forecast, we will present our target price for BEL shares based on our research, experience, and technical analysis.
Target Year 2024
The target price of BEL shares in 2024 is Rs 182.22 to Rs 207.31. This year it will increase further and the value of BEL shares may be Rs 216.21 to Rs 224.50 in the middle of the year.
- 1st target: Rs 207.30
- 2nd target: Rs 224.50
Target Year 2025
In 2025, as per our research and forecast system, the target price for BEL shares is Rs 241.10 to Rs 253.32. At the same, the maximum target price for BEL shares is Rs 245.26 to Rs 266.25 by 2025.
- 1st target: Rs 253.32
- 2nd target: Rs 266.25
Target Year 2026
We have set the first target price for BEL shares in the range of Rs 268.60 to Rs 288.63 in early 2026. At year-end, the second target price for BEL shares is Rs 293.33 to Rs 307.32 by 2026.
- 1st target: Rs 288.63
- 2nd target: Rs 307.32
Target Year 2028
The first target price for BEL shares in early 2028 is in the range of Rs 301.80 to Rs 312.23. Whereas, the maximum target price for BEL shares is in the range of Rs. 321.20 to 33.41 by end of 2028.
- 1st target: Rs 312.23
- 2nd target: Rs 333.41
Target Year 2030
In 2030, as per our technical analysis, the first target price for BEL shares is in the range of Rs 341.21 to Rs 353.52. While the highest target price for BEL shares at mid-year is Rs 362.23 to Rs 376.42 by 2030.
- 1st target: Rs 353.52
- 2nd target: Rs 376.42
BEL Shareholding Pattern
| Promoters | 51.16% |
| Foreign Institutions | 17.34% |
| Retail & Others | 7.36% |
| Mutual Funds | 20.56% |
| Domestic Institutions | 3.58% |
Latest News
Explain that the government has given big orders to domestic companies to promote self-reliant India. The Ministry of Defense had placed orders worth 36 thousand crores only yesterday.
The government has tied up with 6 companies including BDL, BEL, and GRSE. The government has placed several orders on these companies which include Akash missile systems, offshore patrol vessels, etc.
Risk factors
The share price of BEL can be affected due to various reasons and some of the major risks include the following:
- Govt Policies: BEL is subject to government policies, regulations and decisions, which may affect its operations and performance. Changes in policies related to the defence sector can have a significant impact.
- Competition: The defence and electronics sectors are highly competitive, and BEL is likely to face stiff competition from both domestic and international players. Any change in the competitive landscape may affect the demand for BEL’s products and services.
- Regulatory risk: BEL operates in a highly regulated industry, and any failure to comply with regulations can result in fines and penalties.
FAQs
Q: The current share price of BEL is shown above in this forecast chart. But, the target price for BEL shares in 2024 is Rs 207 to Rs 224 by the end of 2024.
A: BEL is good for the long term and you can expect good returns. Now there is an upside trend for huge orders placed by the Ministry of Defence.
A: The target price for BEL shares is Rs 253 to Rs 266 in 2025.
A: The maximum target price for BEL shares in 2028 is Rs 312 to Rs 333.00.
A: The target price for BEL shares is Rs 253 to Rs 276 by 2030.
Disclaimer: The share price forecast on our website (bankshala.com) is for general information only. We are not SEBI-registered financial advisors and no part of the website content provided by us should be considered financial advice. Before investing you should do your research and consult your financial advisor.
