BEL share price target: Bharat Electronics shares gain 9%, hit all-time high post strong Q4 results; what should investors do?

BEL share price today, BEL share price target, BEL Q4 results: Bharat Electronics Limited (BEL) shares on Tuesday, May 21 rose over nine per cent to clock an all-time high of Rs 282.8 on BSE, surpassing the earlier peak of Rs 260.6 clocked on May 18, 2024. The positive trend followed after the Navratna PSU staged a strong performance in the March quarter. Bharat Electronics stock closed 5.93 per cent higher on BSE. 

BEL share price target: What should investors do?

Jefferies has maintained a buy on Bharat Electronics. The brokerage has raised the target by Rs 45 per share to Rs 305 apiece, implying an upside potential of 18 per cent from previous close. The brokerage in its note said, "Q4 EBITDA 30 per cent above expectations as both margins & revenue surprised."

"Non-defence progress remains muted in last 12 months, but FY24E-26E should see double-digit revenue growth based on the order book and pipeline, the brokerage added. 

Morgan Stanley has maintained an overweight rating with a raised target of Rs 300 apiece from Rs 263 apiece earlier. 

Nomura too has continued with a buy call with a target of Rs 300 apiece. Nomura highlighted the following key points: 

• Earnings beat led by strong margins
• 4Q EBITDA ahead of Nomura estimates by 14 per cent
• The company has cash and cash equivalents of Rs 110 billion, compared with Rs 80 billion in FY23.
• Operating cash flow was at Rs 46 billion, up from INR 11 billion in FY23
• Order backlog at Rs 759 billion (3.8x TTM sales)

Morgan Stanley expects some operational efficiencies to remain sticky. It has raised EBITDA margin estimates to 24-24.5 per cent (vs 22.5-23 per cent earlier).

Macquarie has retained an outperform with a target of Rs 280 apiece.

BEL dividend

BEL has recommended a final dividend of Rs 0.80 per equity share of face value of Re 1 each fully paid-up for the financial year 2023-24 subject to approval by the shareholders in the next Annual General Meeting (AGM).

BEL Q4 results: How did it fare in March quarter?

Bharat Electronics posted a 30 per cent increase in its consolidated net profit at Rs 1,796 crore for the March quarter. The company had reported a net profit of Rs 1,382 crore in the year-ago period.

BEL's revenue from operations came at Rs 8,564.08 crore, a 32 per cent jump against Rs 6,479.12 crore logged in the same quarter last fiscal.

For all other news related to business, politics, tech and auto, visit Zeebiz.com.