Bharat Electronics Ltd. (BEL) faced a significant setback on Wednesday, April 2, 2025, as its stock price plummeted over 6%, reaching a low of ₹274.5. This decline came after the company revealed that its order inflows for the financial year 2025 fell short of expectations, sparking concerns among investors.
In an exchange filing on April 1, BEL disclosed that it secured orders worth ₹18,715 crore for FY25, a stark contrast to its projected target of ₹25,000 crore. This shortfall led to a wave of selling pressure on the stock, which dropped about 5.8% on the day of the announcement and continued to slide in the following session.
Despite the disappointing order inflow figures, BEL reported a provisional turnover of ₹23,000 crore for FY25, reflecting a robust 16% increase compared to the previous year’s turnover of ₹19,820 crore. This revenue growth surpassed the company’s own guidance of 15%, indicating a strong operational performance in other areas.
Among the significant projects contributing to BEL's revenue were the BMP II Upgrade, Ashwini Radar, Software Defined Radios, Data Link, Multi-Function Radars, and EON 51, alongside various initiatives in the non-defence sector. BEL's chairman and managing director, Manoj Jain, emphasized the company's commitment to enhancing its global presence, stating, "BEL strives to attain self-reliance through enhanced indigenisation efforts, expansion and modernisation, outsourcing to Indian industries including MSMEs & start-ups." He added that these strategies are intended to help BEL maintain its market leadership in the strategic electronics sector.
As of April 1, 2025, BEL's total order book stood at ₹71,650 crore, which includes an export order book valued at $359 million. The company also reported export sales of approximately $106 million for FY25, marking a 14% increase from the previous year's export sales of $92.98 million.
Despite the recent stock decline, analysts remain cautiously optimistic about BEL's future prospects. The average target price for BEL shares is currently pegged at ₹336, suggesting a potential upside of 21% from current market prices. A consensus recommendation from 24 analysts indicates a 'Buy' rating, with only two analysts issuing a 'Sell' rating. Notably, Macquarie maintains an 'Outperform' rating with a target price set at ₹350, while Kotak Institutional Equities has a 'Sell' rating with a lower target of ₹260.
Technically, BEL's stock shows a relative strength index (RSI) of 57.4, indicating that it is neither oversold nor overbought. The moving average convergence divergence (MACD) stands at 7.2, suggesting a bullish trend. While the stock trades above its 30-day and 50-day simple moving averages (SMAs), it remains below its 5-day, 10-day, 20-day, 100-day, 150-day, and 200-day SMAs.
Year-to-date, BEL shares have declined approximately 5%, but they have surged an impressive 185% over the past two years. The company's market capitalization currently stands at ₹2,03,467 crore, reflecting its significant growth trajectory despite recent challenges.
On April 2, 2025, at 12:49 PM, BEL's share price was noted at ₹281.35, a drop of 3.65% from the previous close. The shares have lost 5.8% on Wednesday, April 2, after ending at ₹291.35 on Tuesday, following the announcement of the order inflow shortfall.
In summary, while BEL's recent order inflow figures have raised concerns among investors, the company’s revenue growth and overall market position remain strong. As it navigates these challenges, BEL's focus on expanding its global footprint and enhancing operational efficiencies will be crucial for sustaining its leadership in the strategic electronics sector.
