Bharat Electronics Q4 Results: Stock gains ahead of earnings; order pipeline, growth visibility key

Nifty 50 constituent and state-run Bharat Electronics Ltd. (BEL) rose over 1% on Monday, May 19, ahead of the company's March quarter earnings.

BEL has received new orders totalling ₹572 crore since its last disclosure on April 7, as per an exchange filing. The major orders include Integrated Drone Detection and Interdiction Systems (IDDIS), Software Defined Radios (SDRs), and data communication units for attack guns.

In addition to the above, BEL has also received orders for AI-driven solutions for naval vessels, various simulators, communication gear, jammers, spare parts, and a range of services.

For the March quarter, BEL's revenue is expected to rise 4% on a year-on-year (YoY) basis to ₹8,933 crore. Net profit may slightly grow by 0.9% to ₹

1,799 crore. BEL's EBITDA margin is expected to be muted at 25.6%.

Investors will also track the company's order pipeline, growth visibility, and execution timelines for key projects.

According to brokerage firm Nuvama Institutional Equities, BEL remains one of the biggest defence electronics manufacturers and compared to others in the space, has better visibility of elevated operating margins on higher indigenisation efforts, cost efficiencies, and a better product mix.

As many as 24 out of the 28 analysts having coverage on Bharat Electronics have a "buy" recommendation on the stock, while two each have a "hold" and a "sell" rating. Incred Research has the highest price target on EL at ₹400, while Kotak Securities has the lowest target for the stock on the Street at ₹260.

BEL shares are currently trading 0.82% higher at ₹366.90. The stock has risen over 22% in the last one month.