Discover the latest trends and insights on Bharat Electronics Share Price. Learn how to navigate the fluctuations and make informed investment decisions.
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Bharat Electronics Share Price Target 2025 and fundamental analysis
Companies in the defense sector showed strong action in the year 2023. All the government and private companies in this sector got a lot of orders last year, with the help of which a bull run was seen in the stocks. Especially the public sector company Bharat Electronics has done wonders. Last year, the stock was up 85%. The share price of Bharat Electronics Limited is Rs 180. Let’s know how the fundamentals are and how it is for the long term (Stocks to BUY) at this price.
Bharat Electronics Shares Remain Attractive
Brokerage firm HDFC Securities has picked this defence PSU stock for investors at this price as well. He believes that even at this price, the fundamentals of the stock are strong. The outlook is also strong, due to which it can be included in the share portfolio. The brokerage has advised buying for the next 3-4 quarters.
Why is there a brokerage bullish on Bharat Electronics?
The company is engaged in the business of defence electronics. It supplies radars, communication and electronic warfare equipment to the Indian armed forces. It is getting huge orders from the government. Based on September 30, 2023, the company’s executed order book is Rs 68,728 crore. It is growing at the rate of 50 per cent annually. The order book is 3.8 times the operating income on a TTM basis.
The company’s order book is strong, return ratio is healthy
So far in FY24, there has been an order inflow of Rs 26613 crore. The total order book for FY23 was Rs 20690 crore. In FY25, the company is expected to receive orders worth thousands of crores of QRSAM, MRSAM which strengthens revenue visibility for the next several years. The guidance for FY24 has been issued to be between 40-42% gross margin and 21-23% EBITDA margin. Gross margin is expected to be 43.6% / 44% and EBITDA margin 23.2% / 23.7% in FY25 / FY26.
Focus on non-defence diversification
The company is also diversifying into non-defence business. The company has also started manufacturing energy storage products. Charging station infrastructure is also a focus. In FY23 sales, 87% came from defence and 13% from non-defence. The focus of the management is to reach the target of non-defence sales to 25%.
Conclusion
In conclusion, understanding Bharat Electronics Share Price requires a holistic assessment of various factors influencing its performance and market dynamics. By staying informed about macroeconomic trends, technological advancements, regulatory developments, and competitive pressures, investors can navigate the complexities of the stock market and make prudent investment decisions. With its robust fundamentals, strategic initiatives, and commitment to excellence, Bharat Electronics continues to be a compelling investment opportunity for discerning investors seeking long-term value creation.
Bharat Electronics Share Price
Investing in Bharat Electronics can offer investors exposure to the burgeoning defense electronics sector and the company’s growth potential driven by technological innovation and strategic partnerships.
FAQs
- What factors influence Bharat Electronics Share Price?
- Bharat Electronics Share Price is influenced by various factors including market performance, economic indicators, technological advancements, government policies, financial performance, and investor sentiment.
- How can investors analyze Bharat Electronics’ financial health?
- Investors can analyze Bharat Electronics’ financial health by evaluating key financial ratios, performance metrics, and growth drivers, which provide insights into the company’s profitability, efficiency, and long-term sustainability.
- What are the risks associated with investing in Bharat Electronics?
- Risks associated with investing in Bharat Electronics include regulatory changes, geopolitical tensions, supply chain disruptions, and technological obsolescence, which can impact the company’s operations and financial performance.
- What is Bharat Electronics’ strategy for future growth?
- Bharat Electronics’ strategy for future growth revolves around leveraging technological advancements, expanding its product portfolio, forging strategic partnerships, and enhancing operational efficiency to capitalize on emerging opportunities in the defense electronics sector.
- How does Bharat Electronics communicate with investors?
- Bharat Electronics communicates with investors through its investor relations initiatives, including quarterly earnings calls, annual reports, investor presentations, and corporate announcements, aimed at fostering transparency and maintaining stakeholder engagement.
- What is Bharat Electronics’ outlook for the future?
- Bharat Electronics’ outlook for the future is optimistic, driven by its strong fundamentals, innovative capabilities, and strategic initiatives aimed at addressing evolving market trends and customer needs in the defense electronics segment.