BEL share price target: Domestic brokerage firm ICICI Securities is bullish on public sector aerospace and defence company Bharat Electronics Limited (BEL). ICICI Securities said that it sees sound growth potential in the company.

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According to ICICI Securities report, BEL’s management expects revenue growth of 15-20 per cent in FY24, spurred by Quick Reaction Surface-to-Air Missile (QRSAM) order and commissioning of new facilities.

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The report said that despite order inflow of a mere Rs 3500 crore in 9 months FY23, the management has reiterated its FY23 order inflow guidance of Rs 200 bn on the basis of:

-Himshakti programme of Rs3300 crore

-Atulya medium-power radar of Rs 2000 crore to 3000 crore

-Orders worth Rs10000 crore for radars and SONAR expected from naval shipyards

Further, of the current orderbook of Rs 51,200 crore, almost 75-80 per cent is on nomination basis and Rs 46000 crore (80 per cent) is from the defence sector. While the current book:bill ratio at 3x appears comfortable, ICICI Securities sees orderbook accretion as a major driver of stock performance.

The Q4FY23 is critical for BEL as the company expects orderbook accretion of Rs 15,500 crore.

The brokerage has maintained ‘Buy’ rating on BEL with a price target of Rs 125.

BEL shares quoted Rs 94.20 apiece on Friday around 3 PM, up 1 per cent from previous close of Rs 93.10. The counter has yielded a positive return of 35 per cent in the past 1 year.

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