BEL v/s HAL: UBS upgrades ratings for PSU Stock, Check latest Price Target and more
Shares of Defence PSU Stock Bharat Electronics Ltd. are in focus after being upgraded by brokerage firm UBS on Friday, May 23.
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New Delhi, 23 May 2025: Shares of Defence PSU Stock Bharat Electronics Ltd. are in focus after being upgraded by brokerage firm UBS on Friday, May 23. The brokerage analyst has also raised its price target on the defence equipment manufacturer by 40%.
The PSU had highlighted that it expects order inflow worth up to Rs 27,000 crore in the FY26. This is excluding the Quick Reaction Surface-to-Air Missile order, which, on materialisation, could bring in further inflows worth up to Rs 30,000 crore.
Whereas the stock has been upgraded to a "buy" rating from "neutral" and raised its price target to Rs 450 from Rs 320 earlier. This revised price target reflects a stimulation of 18% from Thursday's closing levels. The price target on BEL by UBS is the highest on Dalal Street for the stock, followed by JPMorgan's Rs 445.
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Meanwhile, the brokerage had recently downgraded HAL to "neutral" from its earlier rating of "buy". Consequently, the shares of HAL are down by 1.04% at Rs 4,987.40 at BSE.
However, the Global brokerage firm Jefferies has maintained a 'Buy' rating on HAL and raised its price target to Rs 6,475 per share. The brokerage said that HAL's came in 4% above expectations, with margins surprising positively by 765 basis points, reaching 38.7%.
Stock Analysis of BEL:
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The analysis signifies a strong order book upgradation for BEL between the financial years 2025 and 2028, which shows a positive outlook for investors. A long-term order pipeline of nearly 2.4 lakh crore is likely to be converted into orders.
As per the UBS note issued, it stated that major platforms that have been integrated or upgraded by BEL, including the Akash Missile System, the IACC control system, the L70 gun upgrade, Schilka weapons system and multiple radars, now combat-proven, BEL could book orders or repeat orders in both domestic and exports market.
On account of upside risk to earnings and order inflow, both locally and globally, as a result of the recent turn of events, the broking value of the stock is 45 times of 12-month forward price-to-earnings, which is at the higher end of the range. Two analysts each have a "hold" and "sell" rating for the stock, while 25 of the 29 analysts have a "buy" rating.
Shares of BEL are currently trading higher by 0.51% at Rs 385.15 at the BSE.
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