Fri Jan 31 21:02:13 UTC 2025: ## Bharat Electronics Soars on Strong Q3 Results, Broker Upgrades Fuel Rally

**MUMBAI, INDIA** – Shares of Bharat Electronics Limited (BEL) surged over 3.5% on Friday, closing at Rs 288.60, after the state-owned defense company reported a stellar performance for the December 2024 quarter, exceeding market expectations. The company’s market capitalization topped Rs 2.1 lakh crore.

BEL announced a 47.3% year-on-year (YoY) jump in net profit to Rs 1,316 crore, while revenue surged 39% YoY to Rs 5,756 crore. EBITDA also saw a significant increase, rising 57.5% YoY to Rs 1,653 crore. The company’s total order book stands at a robust Rs 71,100 crore, with Rs 10,800 crore in order inflow for FY25. While this inflow is lower than the previously guided Rs 25,000 crore, BEL maintains a positive outlook for FY25, projecting 15% double-digit revenue growth.

The strong results prompted several brokerage firms to upgrade their ratings on BEL. Nirmal Bang Institutional Equities upgraded the stock to “buy” with a target price of Rs 326, citing strong earnings, a robust order book, positive management guidance, and attractive valuations post-correction. Macquarie also issued an “outperform” rating with a target price of Rs 350, highlighting healthy execution trends and the potential for significant future orders. JM Financial maintained a “buy” rating, setting a target price of Rs 360, but noted potential risks from lower-than-expected defense budget allocations and order delays.

While analysts are optimistic about BEL’s prospects, some caution remains. Palak Devadiga of StoxBox noted a sequential decline in margins due to increased expenditure, and pointed out that FY25 order inflow is significantly less than the earlier guidance. Despite this, the substantial order book and BEL’s diversification efforts, including expansion into non-defense sectors, are considered positive factors for future growth. The stock, though up significantly on Friday, remains approximately 15% below its 52-week high.

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