Why Motilal Oswal retained 'Buy' on Bharat Electronics; shares up 3%

Motilal Oswal analysts retained their 'Buy' rating on BEL with a target price of ₹490, based on 45 times September 2027 estimated earnings.

BEL share price: Shares of Bharat Electronics Limited (BEL) saw a sharp uptick on Monday, September 29, 2025, rising as much as 2.85 per cent to an intraday high of ₹407.20 per share. Around 10:05 AM, the scrip was trading 2.55 per cent higher at ₹406, outperforming the broader market, with the BSE Sensex up just 0.4 per cent at 80,748.98.

 

The surge in BEL’s stock comes after reports indicated that the Indian Army has issued a tender to Bharat Electronics for the QRSAM project, also known as ‘Anant Shastra,’ worth nearly ₹30,000 crore. 

 

The project involves procuring 5-6 regiments of the indigenously developed surface-to-air missile systems, with BEL designated as the lead integrator.

 

Motilal Oswal, maintaining its bullish stance on the Bharat Electronics stock, said the order enhances BEL’s order book to more than ₹1 trillion now. 

 

The brokerage noted that along with QRSAM, the company is expected to benefit from “orders for next-generation corvettes, electronics warfare programmes, follow-on orders for electronics for 97 Tejas Mk1A aircraft, loitering munition programs, and potential export opportunities.” 

 

Consequently, Motilal Oswal analysts retained their ‘Buy’ rating on BEL shares with a target price of ₹490, based on 45 times September 2027 estimated earnings.  ALSO READ | Govt plans HAL revamp to speed up defence aircraft, helicopter deliveries 

The QRSAM project, developed by DRDO, was cleared by the Defence Acquisition Council (DAC) shortly after Operation Sindoor in May 2025. The mobile missile system, designed to strengthen the Indian Army’s air defense, can “search, track, and engage targets on the move” and has a firing range of around 30 km, complementing the existing MRSAM and Akash systems. Analysts at Motilal Oswal expect the execution of this project to commence primarily from FY27 onward, with the award of missiles for QRSAM likely flowing through to Bharat Dynamics (BDL).

 

Beyond the QRSAM project, BEL is set to benefit from several large-scale programmes over the next 12-18 months. These include “next-generation corvettes, multiple subsystem orders for the MF-STAR radar programme, Shatrughat and Samaghat electronic warfare systems, follow-on orders for the 97 LCA Mk1A, and loitering munition programmes such as MALE-class drones.” The company is also positioned to supply items for emergency procurement programmes and the Advanced Medium Combat Aircraft (AMCA) program, further bolstering its robust order book.  ALSO READ | Analysts hike Jindal Steel target price; 4 key triggers behind the upgrade 

Under the recently announced TPCR 2025 roadmap, BEL can target a wide range of opportunities across the Army, Navy, and Air Force. Motilal Oswal highlighted that “annual potential ordering for the sector can be USD 25-30 billion over the next couple of years,” covering areas such as EW systems, advanced radars, sonar suites, communication networks, IFF systems, and AI/ML-based data fusion technologies

 

With this strong pipeline of domestic defense projects, international opportunities, and a solid order book, analysts believe, BEL is expected to sustain 15-17 per cent revenue growth over the next 5-7 years.