PSU defence stock up 4% on heavy volumes; nears record high. Do you own?

Bharat Electronics hit four-month high of ₹317.90, rallied 4 per cent on the BSE in Tuesday's intra-day trade amid heavy volumes on a healthy business outlook.

Share price of Bharat Electronics today

 

Shares of Bharat Electronics (BEL) hit a four month high of ₹317.90, as they rallied 4 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes on a healthy business outlook. The stock of the aerospace & defence company is quoting at its highest level since December 2024. It is inching towards its all-time high level of ₹340.35 touched on July 10, 2024.

 

At 11:11 am, BEL was trading 3.7 per cent higher at ₹316.50, as compared to the 0.19 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped over two-fold. A combined 31.77 million equity shares have changed hands on the NSE and BSE.  CATCH STOCK MARKET LIVE UPDATES TODAY HERE

 

 

Strong order inflow

 

As on April 1, 2025, the total order book of BEL stood at around ₹71,650 crore including export order book of $359 million.

 

On April 7, 2025, BEL announced that it has signed a deal with the Defence Ministry worth ₹2,210 crore, for the supply of Electronic Warfare (EW) Suite for Mi 17 V5 Helicopters of Indian Air Force (IAF). With this, BEL has accumulated orders totalling ₹2,803 crore in the current financial year 2025-26.

 

Meanwhile, on Monday, India and France signed an Inter-Governmental Agreement for the purchase of 26 Rafale Marine (22 single-seater and four twin-seater) aircraft for the Indian Navy, along with associated equipment, weapons, training and simulators. 

 

The deal valued at ₹63,000 crore includes Transfer of Technology for integrating indigenous weapons and setting up production and MRO facilities in India. The deal also extends logistics support for the existing IAF 36 Rafale jets (purchased in 2016) and enhances the IAF's aerial refuelling capabilities. The 26 Rafale-M jets, manufactured by Dassault Aviation, are scheduled to be delivered by 2030.

 

BEL achieves record turnover of ₹23,000 crore in FY25

 

BEL has achieved a turnover of around ₹23,000 crore (provisional & unaudited), during the FY25, against the turnover of ₹19,820 crore in FY24, registering a growth of 16 per cent. This includes export sales of around $106 million during FY25, as against the export turnover of $92.98 million in FY24.

 

In FY25, BEL secured orders worth ₹18,715 crore. Some of the major orders received during FY25 are BMP II Upgrade, Ashwini Radar, Software Defined Radios, Data link, Multi-Function Radars, EON 51, Seekers, Anti drone system, Airport Surveillance Radar, Sonar Upgradation, Flycatcher spares, Radar upgradation, Spares and Services etc and other projects in Non-defence sector.  ALSO READ | M&M-SML Isuzu deal strategically positive; execution remains key: Analysts

 

Rating agency ICRA’s view on BEL

 

ICRA expects BEL to register a revenue growth of 10 per cent-15 per cent over the next 2-3 years and will maintain its robust coverage metrics and superior liquidity position in the interim. Though the competition from the private sector is likely to intensify in the medium to long term, with the Government’s focus on increasing the share of private sector in the manufacturing and technological development in the defence sector, the rating agency said.

 

The Government’s growing capital budget allocation and continued focus on increasing India’s defence product manufacturing capability are expected to support the order inflow for BEL in the medium to long term. Additionally, the Government of India’s increased focus on increasing indigenous procurement under ‘Atmanirbhar Bharat’ provides a unique opportunity for BEL to build its future revenue streams through development of domestic capabilities, according to analysts.

 

With expectations of a strong fourth quarter performance, ICRA estimates BEL’s FY2025 full-year revenues to witness a healthy growth of ~10 per cent-15 per cent on a YoY basis.  ALSO READ | HAL, Mazagon Dock: Defence stocks rally on India-Pak conflict, Rafale deal

 

About BEL

 

BEL, a Navratna DPSU, was established in 1954 under the Ministry of Defence, the GOI, to cater to the electronic equipment requirements of the defence sector. The GOI remains BEL's largest shareholder with the current shareholding of 51.14 per cent. BEL is the dominant supplier of radar, communication and electronic warfare equipment to the Indian armed forces. The company has nine manufacturing units across India and two research units. The Bangalore and the Ghaziabad units are BEL's two major units, with the former contributing to the largest share of the company’s total revenues and profits.