In today’s rapidly changing financial markets, people tend to search for good inherent values combined with favorable prospects. One stock that has caused much interest for many investors is Bharat Electronics Limited (BEL). For India’s defense industry, BEL has been progressing systematically with technically innovative strides. But what excites investors more is the Bel Share Price Target expected for the future years. In this article, we will review BEL’s Balance sheets and income statements, ratios, and forecast its share prices for the years 2040, 2045, and beyond.
Table of Contents
About the BEL Company
BEL is a Navratna Public Sector Undertaking working under the Ministry of Defence, India, and an electronics company. BEL was established in 1954 and has been vitally designing and producing state-of-the-art electronic equipment for defense and aerospace applications as well as the civilian market. Its strategic product portfolio consists of radar systems, naval systems, weapon systems, and communication products. The company’s partnerships and integration into innovation are essential to India’s defense modernization.
What is the Business Overview for Bel?
BEL defense electronics forms its core business where the company deals with various products and services to military and related institutions. BEL has diversified into different sectors from defense in recent years to homeland security, smart city, e-governance, and medical electronics. The Indian government has embraced self-generated defense production through campaigns such as Make in India and this has helped BEL sign long-term contracts thus steady business development.
Key Fundamentals of Bel
The strengths of BEL include the sound financial position of the company combined with government support and the presence of a diversified product line. Thus being in the defense business, the company has a healthy revenue stream as it has monopoly-like conditions in some segments. The no-debt, more cash working capital structure makes BEL financially strong. It shows Return on Equity (ROE) more than 15% and Earnings Per Share (EPS) which has exhibited rising tendency in the past three years which is a strong indicator of its profitability and efficient management of shareholders’ capital.
The Price-to-Earnings (P/E) ratio BEL further supports its attractiveness as an investment. A lower P/E ratio can indicate that a stock is undervalued relative to its earnings, presenting a potential opportunity for investors seeking long-term gains.
BEL enjoys a monopoly-like position in some key segments of the defense sector, particularly in radar systems, electronic warfare, and defense communication.
The Strong Financial Position of BEL’s financial health is a key strength. The company operates with no debt On its balance sheet, BEL has liquidity to support its operational and investment needs without relying on external financing.
Operating in the defense sector, BEL receives strong government backing. The company is a crucial player in India’s defense infrastructure, ensuring its place in national defense projects.
|
Market Cap |
2.11 trillion
|
|
Enterprise Value |
136,287.82 Cr |
|
52 Week High/Low |
340.50- 127.00 |
|
Stock P/E |
59.9419 |
|
Book Value |
₹ -39.8 |
|
Dividend Yield |
0.77 |
|
ROCE |
31.71% |
|
ROE |
24.41 |
|
Face Value |
1 |
|
Price to Book Value |
-12.79 |
|
EPS |
-5.80 |
|
Debt |
₹0.62 billion |
|
Promoters Holding |
51.14% |
What will be the Financial Performance of Bel?
As for the financial aspect, the PRE post-LT analysis clearly shows that BEL has been in a steady progression in the last few years. In the financial year 2023, the company achieved a turnover of Rs 17,300 crore, a YoY growth of 15 percent. The net profits were at INR 2,900 crore, which was a very good strength from the last year and an annual growth of 20%. The operating margins remain at almost 22% and it also depicts a good aspect of the company in terms of cost controls. On the third Axis BEL has a fair order book exceeding INR 60,000 crore orders which provides revenue visibility for the next few years.
|
Revenue |
4.24KCr |
|
Net income |
791Cr |
|
Diluted EPS |
– |
|
Net profit margin |
18.64% |
What is the Share Holding Pattern for Bel Share?
BEL has a good geographical spread of its shareholders and they are mainly the Ministry of Defence, Government of India with 51% of the stake. The remaining 49 % is owned by institutional investors, retail investors/individuals, mutual funds, and Foreign Institutional Investors (FIIs). A large government stake is useful to stock stability, while the extension of FII and mutual fund investment base shows that institutional investors believe in BEL’s sustainable future growth.
|
HOLDING |
Sep 2024 |
June 2024 |
|
Promoters Holding |
51.1% |
51.1% |
|
FII Holding |
17.3% |
17.4% |
|
DII Holding |
20.2% |
20.6% |
|
Public Holding |
11.4% |
10.8% |
Get Bel Share Price Target 2024
Based on the current financial standing and a strong order book coupled with parabolic government deals, the Bel Share Price Target ranges for 2024 will be set at INR 180-250. It could be supported with defense budget releases and handy in military development.
|
Year |
Price Target |
|
2024 |
INR 180-250 |
Get Bel Share Price Target 2025
For the year 2025, BEL is expected to lie in the range of INR 240- to 300 with the help of new business horizons in health care and smart city domain. The opportunities arising out of the export markets venture will also enable the company to boost its revenues.
|
Year |
Price Target |
|
2025 |
INR 240 to 300 |
Get Bel Share Price Target 2026
The forecasted value for the Bel Share Price Target in the year 2026 is INR 210 to INR 230. This growth will be driven by the ability to successfully deliver large-scale defense projects as well as an increasing desire among different countries to indigenously manufacture their defense equipment.
|
Year |
Price Target |
|
2026 |
INR 210 to INR 230 |
Get Bel Share Price Target 2027
For the record, the stock is expected to peak at INR 240 to INR 260 in 2027. There will always be pressure to indigenise the defence sector under government policies which will continue to be the growth tailwinds for BEL and make it even more attractive to invest in.
|
Year |
Price Target |
|
2027 |
INR 240 to INR 260 |
Get Bel Share Price Target 2028
The Bel Share Price Target of 2028 could lie between Rs 270 and Rs 290. Therefore, because BEL is now in a much better position to expand into international markets, and looks towards sealing more strategic partnerships, this stock will soar even further.
|
Year |
Price Target |
|
2028 |
Rs 270 and Rs 290. |
Get Bel Share Price Target 2029
Presumably, BEL’s share price may lie between INR 300 and INR 320 in 2029. It also shows that BEL is heavily investing in R&D & Innovation on new products that would improve the BEL market products.
|
Year |
Price Target |
|
2029 |
INR 300 and INR 320 |
Get Bel Share Price Target 2030
Based on these considerations and business projections, the BEL share price target can be around INR 340 to INR 430 by 2030 because of secure long-term contracts, new inventions, and the diversification into other areas that are not only defense-oriented.
|
Year |
Price Target |
|
2030 |
INR 340 to INR 430 |
Get Bel Share Price Target 2035
The forecast of the stock price for 2035 is expected to range from 450 to 480 INR; the company will focus on its international presence and diversify its product portfolio.
|
Year |
Price Target |
|
2035 |
450 to 480 INR |
Get Bel Stock Price Target 2040
Bel Share Price Target of INR 550- INR 600 by 2040. Technological growth and BEL’s higher and sustainable defense offering suggest that the company should continue growing over the long haul.
|
Year |
Price Target |
|
2040 |
INR 550- INR 600 |
Get Bel Share Price Target 2045
BEL is expected to consolidate its order book from the government over the long term, and as its exports rise, the company’s share price for 2045 is expected to be in the range of INR 700 to INR 750
|
Year |
Price Target |
|
2045 |
INR 700 to INR 750 |
Get Bel Share Price Target 2050
Thus, by 2050, BEL’s stock could rise to anywhere between 1000 to 1100 INR on account of the company’s control of practically all defense electronics in India and its focused attempts at entering into new age technologies.
|
Year |
Price Target |
|
2050 |
1000-1100 INR |
Factors Influencing Bel Share Price Target
There is therefore a relationship between Bel Share Price Target, government spending on defense, geopolitical risks, technology changes, and exporting market opportunities. Also, the capacity of BEL in getting entrench long-term contracts, and continuing its dominance as the market leader will play an important role in the stock price trend of BEL.
What will be the Future Growth Prospects of the Bel Share Price Target Company?
BEL being dependent on domestic demand, the company has much to look forward to and the future growth seems favorable as more money is likely to be spent on defense, the government is encouraging defense manufacturing in the country and exports can be expected. Pictured above expanding from the defense industry to other areas such as medical electronics and smart city business, which will help the company maintain steady revenues across the decades to come.
Conclusion
Bharat Electronics Limited (BEL) could be considered as a solid candidate for a long-term investment with rather solid fundamentals and a production focus on the defense area. However, following that, along with its growing service offering and sustainable financial positioning, the Bel Share Price Target makes both the short and long-term investment attractive.
FAQs
BEL primarily deals in defense electronics and systems for the Indian defense forces.
For 2024 it is estimated to be within the range of INR 150 to INR 170 as the share price target.
The new order book of BEL is over INR 60,000 crore which offers good revenue certainty.
Yes, BEL has been paying its shareholders a dividend for many years now.
BEL has spread out its business in sectors other than defense like smart cities, medical electronics, and homeland security.
BEL has spread out its business in sectors other than defense like smart cities, medical electronics, and homeland security.
BEL is financially stable having no debts and adequate cash, an intangible asset that strengthens its position as the new millennium company of the craft.
Disclaimer
This article is just for information and education purposes. These predictions and statistics of share prices are just for educational purposes. We don’t recommend buying and selling any shares of the company. Investors are responsible for conducting research on share prices before investing in any share. We are not responsible for loss and damage arising while using this stock price content.
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