BEL share price NSE: Extending their rally, shares of Bharat Electronics (BEL) in Tuesday’s trade (December 26) opened 2 per cent higher at Rs 178.35 after global brokerage CLSA raised its target price on the defence PSU to Rs 207, implying potential gains of over 18 per cent from the last close of Rs 174.85.

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At around 9:19 am, BEL shares scaled further and traded 3.92 per cent higher at Rs 181.70 after hitting a fresh all-time high of Rs 183, a sharp gain of close to 5 per cent. 

CLSA has turned bullish on the counter, given the new orders. On December 22, the company bagged orders aggregating to Rs 2,759.15 crore. In a filing with the exchanges, BEL said, "..received orders worth Rs. 2,673 Crs from Goa Shipyard Limited (Value: Rs. 1701 Crs) and Garden Reach Shipbuilders & Engineers (Value: Rs. 972 Crs) for the supply of 14 types of sensors for use on Next Generation Offshore Patrol Vessels (NGOPV). This will have the participation of electronics and associated industries, including MSME, which are sub-vendors of BEL. The equipment manufactured by BEL is part of the ‘Atmanirbhar Bharat’ programme."

The company has also received additional orders worth Rs 86.15 crore since the last disclosure on December 15, 2023, and the said orders pertain to miscellaneous spares and services, according to the company’s press release.

CLSA maintains that amid raining ‘Make in India’ orders, the company’s original equipment manufacturer (OEM) orders in the fourth quarter of the financial year 2023 drove BEL’s FY24 order surprise. Further, it added that the company is set to beat its FY24 order inflow guidance of Rs 20,000 crore with FY24 YTD orders of Rs 25,900 crore.

The global brokerage observes a rising share of electronics in defence equipment, with the latest sensor order for BEL for next-generation offshore patrol vessels accounting for 28 per cent of the OEM orders.