BEL could hit ₹420-425 soon, ₹500 in 1–2 years: Analyst
In a recent report, a prominent analyst has predicted that Bharat Electronics (BEL) shares could reach a short-term target of ₹420-425 and a long-term target of ₹500 in the next 1-2 years. This forecast is based on the company’s robust order book, the government’s defense push, and key projects like Akashteer and Project Kusha.
BEL shares have been on a tear, surging 50% in the past six months. Despite this impressive gain, many investors remain bearish on the stock. However, Deepak Pal, a SEBI-registered analyst, believes that the company’s prospects are bright and that the shares have significant upside potential.
Order Book Strength
BEL’s order book is currently valued at ₹76,000 crore, which is a major driver of the company’s growth prospects. The order book includes a mix of domestic and international orders, which provides a stable source of revenue for the company. The company’s order book is expected to continue to grow as it wins new contracts and executes its existing orders.
Government Defense Push
The Indian government has been actively promoting the defense sector, and BEL is a key beneficiary of this push. The government has increased its defense budget, and BEL is well-positioned to benefit from this increased spending. The company is also a major supplier to the Indian defense forces, which provides a stable source of revenue.
Key Projects
BEL has several key projects in its pipeline, including Akashteer and Project Kusha. Akashteer is a major project to develop a new generation of electronic warfare systems, while Project Kusha is a project to develop a new generation of communication systems. These projects are expected to drive growth for the company in the coming years.
Analyst’s View
Deepak Pal, a SEBI-registered analyst, believes that BEL shares have significant upside potential. He has a target price of ₹420-425 for the short term and ₹500 in the next 1-2 years. Pal believes that the company’s order book, government defense push, and key projects make it an attractive investment opportunity.
Near-Term Traders
Near-term traders should watch Prime Minister Narendra Modi’s Independence Day speech for defense sector cues. The speech is expected to provide an update on the government’s defense policies and spending plans. Any positive comments or announcements on the defense sector could boost BEL shares.
Retail Sentiment
Despite BEL shares’ impressive gain of 31% this year, retail sentiment remains bearish. Many investors are still cautious about the stock, citing concerns about valuations and the company’s ability to execute its orders. However, Pal believes that the company’s strong order book and government support make it a solid investment opportunity.
Conclusion
In conclusion, BEL shares have significant upside potential, according to a prominent analyst. The company’s robust order book, government defense push, and key projects make it an attractive investment opportunity. Near-term traders should watch Prime Minister Modi’s Independence Day speech for defense sector cues, while long-term investors should consider BEL as a solid investment opportunity.
