Bharat Electronics shares rise as brokerages upgrade stock rating
Motilal Oswal and Elara Capital raised target prices for the defence firm following its second quarter results.
Shares of state-owned defence company Bharat Electronics rose by as much as 3 per cent to a high of Rs 392 on the BSE on Wednesday, according to The Economic Times. The gain followed a target price hike by Motilal Oswal and a rating upgrade from Elara Capital.
Elara Capital upgraded the stock to Buy from Accumulate and set a target price of Rs 465 per share. Motilal Oswal raised its target price to Rs 540 per share, suggesting a 42 per cent upside from the previous close. Jefferies also set a target price of Rs 490.
The company reported a standalone net profit of Rs 1,541 crore for the second quarter ended September 30, up from Rs 1,286 crore in the same period last year. Consolidated revenue from operations reached Rs 7,328 crore, while consolidated net profit rose from Rs 1,287.2 crore in the previous year's second quarter.
Bharat Electronics has reiterated its FY27 guidance, which includes a 15 per cent revenue growth target and order inflows exceeding Rs 55,000 crore. The company plans to invest over Rs 2,200 crore in research and development and Rs 1,200 crore in capital expenditure during the year.
The company's order book was valued at Rs 68,700 crore as of October 1, 2026. This includes more than 300 projects, such as electronic fuzes worth Rs 4,200 crore and LCA Mk1 worth Rs 3,200 crore. The business mix is expected to remain 90 per cent defence and 10 per cent non-defence.