This multibagger Navratna PSU stock gains today: Here's why

Shares of the defence Navratna PSU- Bharat Electronics (BEL) in Tuesday's trade gained over 1 per cent in early trade to the day's high price of Rs 318.25 after the company has bagged additional orders worth as much as Rs 634 crore after November 8.

In its filing with the exchanges, the company said, "Navratna Defence Public Sector Undertaking, Bharat Electronics Limited (BEL), has secured additional orders worth Rs.634 crores since the last disclosure on 8th November, 2024."

Major orders include maintenance of Akash Missile System, telescopic sights for guns, communication equipment, jammers, electronic voting machines, test stations, spares, services etc. With these orders, BEL has now accumulated orders totaling Rs.8,828 Crores in the current financial year, it added.

Last week, Defence Acquisition Council (DAC), under the chairmanship of Defence Minister Rajnath Singh, accorded Acceptance of Necessity (AoN) for five capital acquisition proposals amounting to more than Rs 21,772 crore. The Council granted AoNs for the procurement of 31 New Water Jet Fast Attack Crafts (NWJFACs) for the Indian Navy.

In November this year, the company secured additional orders of more than Rs. 500 crore since its last disclosure on 07 Oct 2024. 

Sharekhan in its report dated December 9 has reiterated its 'buy' call on the counter with a  target of Rs 380, implying probable gains of nearly 21 per cent from the previous close. The brokerage said the company’s future order pipeline is also promising as orders worth Rs. 65,000 crore (including QRSAM) are to be awarded in the next
two years.

Sharekhan believes that BEL would play a significant role in successfully implementing the government’s Make in India and AtmaNirbhar Bharat initiatives, as it is a key defence and aerospace player. After the strong performance in this quarter, it maintains its price target of Rs 380 to 44x of FY2027 EPS.

BEL stock price performance

Year-to-date, the stock has gained 71 per cent, while its 3-year return is at a whopping 360 per cent.