Bharat electronics share analysis


 Here’s the current view on **Bharat Electronics Ltd (BEL)**:


## 📈 Market Snapshot


* **Price (Jun 13, 2025):** ₹394.20 (≈ +1.8% daily) ([tradingview.com][1])

* **52‑Week Range:** ₹240.25 – ₹401.85 ([tickertape.in][2])

* **Valuation:** P/E ≈ 54×; P/B ≈ 14–17×; Dividend yield ≈ 0.6 % 

* **Analyst Ratings:** Overall “Buy” consensus (7 strong-buy, 11 buy, 2 sell) ([livemint.com][3])

* **Chart Signals:** ‘10‑day & 5‑day moving average crossovers’ bullish, typical 7‑day post-signal gain \~3.7 % ([economictimes.indiatimes.com][4])


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## 🛡️ Fundamental Strengths


* **Debt-free** with negligible interest burden ([screener.in][5])

* **Profit Growth:** \~24% CAGR over 3–5 years; 18% YoY Q4FY25 PAT growth (₹2,127 Cr), revenue ↑7% to ₹9,150 Cr ([economictimes.indiatimes.com][6])

* **ROE:** Strong, around mid‑20s percent 

* **Order Book:** New contracts worth ₹537 Cr since May 16, including QRSAM systems; massive ₹30,000 Cr military missile procurement pipeline across sector ([en.wikipedia.org][7])


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## 🚩 Risks & Observations


* **High valuation** at \~54× P/E and P/B \~14–17× against rising working capital days ([screener.in][5])

* **Rising WC days** from \~44 to \~85, potentially affecting cash flows 

* **Mutual fund trimming**: HDFC Defence Fund sold \~7.9 Lakh BEL shares in May ([m.economictimes.com][8])


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## 🎯 Short-Term Targets


* **Technical view:** Moving-average crossover suggests \~3–4% upside in next week ([livemint.com][9])

* **Analyst target:** Anand Rathi suggests buying around ₹390–395, targeting ₹420 with stop-loss ₹375 ([livemint.com][9])


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## 📅 Upcoming Catalysts


* **Q1 FY26 results (likely August 2025)**

* **Further order announcements**, especially defence contracts

* **Sensex inclusion**: Scheduled June 23, 2025 – could boost institutional interest ([economictimes.indiatimes.com][10])


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## ⚖️ Final Take


BEL stands on solid financial footing – debt-free, strong ROE, consistent profit growth, and a robust order pipeline. Technical indicators back a bullish near-term outlook. However, its elevated valuation and growing working capital needs suggest caution; it may offer best entry around current levels or slight dips.


### ✅ Suggested Strategy:


* **Aggressive investors**: Buy near ₹390–395, aim ₹420, with ₹375 stop-loss.

* **Long‑term investors**: Value in BEL lies in its defence tailwinds and state‑backed orderbook strength — suitable for core portfolio, patience required.





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