Business · India Bureau
BEL shares surge on strong order prospects, analyst upgrades target
Motilal Oswal Financial Services has raised its price target for Bharat Electronics Limited to ₹540, citing robust order inflow expectations following the company's second-quarter performance. The brokerage maintained its 'Buy' recommendation on the defence PSU stock.
LSN India ·
Shares of Bharat Electronics Limited (BEL) climbed 5 percent as analyst confidence in the defence manufacturer's growth trajectory strengthened following its quarterly results. Motilal Oswal Financial Services revised its target valuation upward to ₹540 per share, up from an earlier projection of ₹530, signalling optimism about the company's near-term prospects.
The brokerage's positive stance reflects expectations of sustained order inflows for BEL, one of India's leading defence equipment manufacturers. The upgrade comes as the company continues to benefit from increased government spending on indigenous defence capabilities and modernisation of the armed forces.
The price target revision underscores analyst confidence in BEL's ability to convert its order book into revenue growth. The company, which supplies critical defence systems and electronic components to the Indian military, has positioned itself to capitalise on the government's push for self-reliance in defence production.
Motilal Oswal's continued 'Buy' rating suggests that current valuations offer attractive entry points for investors seeking exposure to India's defence sector, which is expected to witness sustained growth driven by modernisation requirements and geopolitical considerations.