Finance1 min read

490% return in 5 yrs: BEL shares up 9% in week - How much upside do experts see in defence PSU stock post Q2 results?

By · Published by Everything Blog

In short

The company reported a 19.6% year-on-year rise in net profit for the second quarter, outperforming estimates across revenue, EBITDA, and profitability. While base order inflows declined by 31% due to finalization delays, management anticipates securing an order worth ₹200 billion in the approaching quarters. Supported by this expected influx, brokerage Motilal Oswal projects steady double-digit compound annual growth and set a target price of ₹540 per share.

Key points

  • The defence manufacturer anticipates securing a major new order valued at ₹200 billion in…: The defence manufacturer anticipates securing a major new order valued at ₹200 billion in the coming quarters.
  • Brokerage Motilal Oswal maintained a Buy rating on the stock with a revised target price…: Brokerage Motilal Oswal maintained a Buy rating on the stock with a revised target price of ₹540 per share.
  • Profit after tax is projected to grow at a compound annual rate of 15% between FY26 and F…: Profit after tax is projected to grow at a compound annual rate of 15% between FY26 and FY29.

Sources checked by our analysis pipeline: 1

BEL share price rally: Shares of Bharat Electronics Limited ended higher on Wednesday, November 4, as Q2 results 2026 euphoria fuelled the rally in the defence PSU stocks. The state-owned defence manufacturer reported a 19.6% annual jump in its net profit for the second quarter of financial year 2026-27.

The defence PSU stock ended nearly 4.56% higher on Wednesday, November 4. The defence PSU stock has delivered nearly 490% return over the last five years. The Navratna defence PSU reported a strong set of results with profits and revenues outperforming expectations.

BEL share price outlook

BEL posted a strong set of results, as the defence PSU delivered stronger than estimated revenue, EBITDA, profit, highlighted Motilal Oswal in its report. While base order inflows declined 31% on an annual basis, the company is hopeful of a large order worth ₹200 billion in the coming quarters.

“There have been certain delays by the MoD in finalizing projects, but we expect inflows to ramp up in the coming quarters. We maintain our estimates and expect a revenue/EBITDA/PAT CAGR of 15%/14%/15% over FY26-29,” read…

Finance

More in Finance