Defence stock to buy: Brokerages suggest buying this defence stock trading under Rs 320; check target price

On Tuesday, July 30, the Indian stock market closed in green. Benchmark equity indices Sensex and Nifty closed at record high levels. 

The market capitalisation of BSE-listed companies reached a new all-time high of Rs 460 lakh crore today, aided by a record-breaking stocks surge.

The rupee also rose one paisa to settle at 83.72 versus the US dollar, reflecting a favorable trend in local markets ahead of the US Fed policy decision.

Meanwhile, brokerages suggest buying a multi-bagger defence stock for up to 16 per cent gains. 

Stock to buy: BEL

Brokerage Jefferies maintained a 'buy' call and raised the target to Rs 370 from Rs 305. As per the brokerage the company has posted stellar Q1 numbers. Further, it believes the Rs 76,700 crore order book provides FY24-27E revenue visibility and maintains a 15 per cent year-on-year (YoY) revenue growth guidance. 

Brokerage Nomura's views on BEL

Nomura has also advised buying BEL shares. The brokerage has increased the target from Rs 350 to Rs 363. 

On the other hand, brokerage Macquarie has given an 'outperform' rating for the target of Rs 350.

On Tuesday, July 30, shares of BEL closed at Rs 318, down 1.04 per cent from its last closing price.

A look at BEL's Q1FY25 earnings

On Monday (July 29) BEL, during market hours, BEL reported a 46.1 per cent rise in consolidated net profit at Rs 776.14 crore against Rs 530.84 crore in the corresponding period of the previous year.

The Navratna Defence PSU achieved a turnover of Rs 4105.14 crore, registering a growth of 19.10 per cent during the Q1 of FY 2024-25 against Rs 3446.69 crore a year ago. 

BEL share price history

In a year, BEL shares have given a multi-bagger returns of over 145 per cent against Nifty50's rise of 25 per cent. While in six months, the defence company's stock rose almost 70 per cent, and almost 250 per cent in the last two years.