Shares of Bharat Electronics (BEL) soared by 9.35% in early trading today, reaching a new record high of ₹283 per share. This surge followed the release of the company’s fourth-quarter and fiscal year 2024 financial results on Monday, which exceeded analyst expectations.
In Q4, the Navratna Defense PSU reported a consolidated net profit increase of 30%, totaling ₹1,797 crore compared to ₹1,382 crore in the same period last year. Revenue from operations for the quarter grew by 32.18% year-on-year to ₹8,564 crore. For the full fiscal year 2024, BEL reported consolidated revenue from operations of ₹20,268 crore, marking a 14.28% increase, with net profit rising by 33.45% to ₹3,985 crore.
During FY24, BEL secured orders worth approximately ₹350 billion, contributing to an order book increase to ₹760 billion. The company also witnessed a significant rise in exports, reaching $93 million, reflecting a 92% year-on-year increase.
BEL holds a market share of 12% in the overall defense market and nearly 60% in the highly specialized defense electronics segment. Motilal Oswal expects BEL to benefit from defense indigenization potential worth ₹5 trillion over the next five years, leading to an upgrade from ‘Neutral’ to ‘Buy’.
Additionally, Nomura initiated coverage on BEL with a ‘buy’ rating and a target price of ₹300 per share, emphasizing India’s rising defense capital expenditure and lucrative ordering opportunity.
