Bharat Electronics Ltd (BEL), a Navratna Defense PSU, share price surged over 4% after the company reported a 47.3% growth in its PAT for Q3FY25. The company announced its Q3 FY25 results for the quarter ending December 2024 on January 31.
In early trading, the BEL share price is up by 3.33%, trading at Rs 288.50.
1. What do brokerages say?
Following BEL’s Q3 results, leading brokerages have shared their insights, raising their expectations for the company. Let’s take a look into in detail
Jefferies: Bullish target of Rs 370, highlights strong Q3 earnings
The brokerage firm, Jefferies has a Buy call on BEL with a target price of Rs 370 per share. According to them, the company’s Q3 EBITDA was 51% above expectations.
The company’s EBITDA margin rose to 28.7% compared to the expected 23.7%, which points to strong operational execution, as per the brokerage.
While BEL is expected to experience some quarterly revenue and margin volatility, primarily due to fluctuations in deliveries, Jefferies believes the company’s ability to maintain its guidance bodes well for its future.
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The brokerage house, Nomura also maintains a Buy call with a target price of Rs 363 per share. The firm is expecting 8% earnings growth in FY25.
Furthermore , the firm has also raised its FY25 EBITDA margin and EPS estimates by 200 bps and 8% respectively, in light of the Q3 beat.
Macquarie: Maintains Outperform rating, forecasts big orders for FY26
Macquarie has an Outperform rating with a target price of Rs 350. The brokerage notes that FY25 order guidance remains steady, and a large value order worth Rs 25,000 crore to 50,000 crore is expected for FY26.
Moreover, the firm believes that the company’s execution trends and the possibility of receiving a submarine components order, could provide further growth opportunities.
Morgan Stanley: Focuses on Non-Defense business expansion
Morgan Stanley maintains an overweight rating with a target price of Rs 364. According to the brokerage, the Non-defense business expansion remains a key focus, with BEL aiming to increase its share of this segment to 15% in the coming years.
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