Morgan Stanley ‘overweight’ on BEL after robust Q1 results; see 15 percent upside in PSU stock

Bharat Electronics (BEL) stock has done very well, as it has increased about 140% in the last year. This means investors more than doubled their money.

Morgan Stanley, a big investment company, believes BEL will keep doing well. They gave the stock a high rating and increased their target price to Rs 364 per share.

This change happened because BEL’s performance in the first quarter of the financial year 2025 was better than predicted. They made more money in revenue, EBITDA (a measure of a company’s overall financial performance), and changed PAT (Profit After Tax).

Morgan Stanley’s analysts said that BEL kept its recommendation for FY25 and expects to get a big order for a quick-reaction Surface-to-air missile system (QRSAM).

The good results have shown higher margin forecasts. While Morgan Stanley is positive about BEL, another big company, UBS, which gave the stock a ‘Neutral’ rating despite its strong performance in the quarter ending June 2024.

BEL’s management thinks they can get a 15% increase in revenue and get orders worth Rs 25,000 crore, according to UBS. But UBS does not see a big upside to this and wants more details on timelines for larger projects like QRSAM and future Akash orders.

UBS thinks that another company, HAL, has possibility for new orders than BEL in the next 12-24 months. UBS is still positive about BEL’s earnings and order book growth but thinks the stock’s medium-term growth potential is already seen in its price.

Despite devaluing the stock, UBS increased the target price to Rs 340 from Rs 333, using the same target Price-to-earnings (PE) ratio of 40 times on 12-month-forward earnings as of July 2025.

According to JM Financial, BEL plans to find new growth possibilities through exports, diversification, capabilities improvement, competitiveness, and modernization.

Prahbudas Lilladher is also positive about BEL’s long-term growth because of its strong order backlog and pipeline, which are caused by the government’s push on indigenization in defense, diversification into non-defense areas, strong balance sheet, cash flow generation, and return ratios.

On July 30, BEL shares ended lower at Rs 317.80 on the National Stock Exchange (NSE). So far this year, the stock has gone up 72%, beating the Nifty 50 index, which rose 15% during this period.

JM Financial and Motilal Oswal have a ‘buy’ rating for BEL with a target price of Rs 360 each. Prabhudas Lilladher has upgraded the stock to ‘accumulate’ with a target price of Rs 341, while Nuvama has a ‘hold’ rating with a revised target price of Rs 304.

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People May Ask

Is BEL a Good Share to Buy?

Yes, BEL (Bharat Electronics Limited) is a good share to buy according to experts. The company made a lot more money in the first part of 2024 compared to the same time last year. This makes many people think it is a strong company. Some experts believe the share price could increase to Rs 370 because the company is doing well and has many orders to fulfill.

What is the price target for BEL in 2025?

Experts think BEL’s share price could be between Rs 350 and Rs 370 by 2025. This means they expect the company’s value to keep growing because it has a lot of work to do and is making good money.

What is the target price of BEL in 2030?

By 2030, BEL’s share price might increase even more. Experts say the company could keep growing its revenue (the money it makes) by 16% every year and its profit by 17% every year. This change is because of the strong defense sector in India and the company’s good position in the market.

Is BEL Overvalued?

Some people think BEL’s share price might be some high right now because it has gone up so fast recently. However, the company is doing well and is expected to grow more in the future, so it might be worth the current price in the long term. It could be good to wait for a lower price before buying.