BEL shares jump 4%, hit 52-week high after Nuvama raises target price post strong Q4 results

Synopsis

BEL shares: Nuvama highlighted that BEL's Q4 margins improved to 30.6% from 26.7% quarter-on-quarter, exceeding market expectations of 24.7%. The management has reiterated its guidance of 15% revenue growth and a 27% operating profit margin, indicating sustained confidence in the company's outlook.

Shares of Bharat Electronics (BEL) surged over 4% to hit a fresh 52-week high of Rs 379.7 on Wednesday after brokerage firm Nuvama retained its ‘Buy’ rating and raised the target price to Rs 430 from Rs 385, citing strong Q4 results and a robust outlook.

Nuvama noted that BEL's Q4 margins rose to 30.6% from 26.7% QoQ, surpassing Street expectations of 24.7%. The management has maintained its guidance of 15% revenue growth and 27% operating profit margin, reflecting continued optimism.

The brokerage believes BEL has more positive triggers than risks and sees further potential for a re-rating as the company continues to outperform its own and the Street’s profitability estimates. Nuvama added that the timely execution and sustainability of large orders in the pipeline, coupled with improved operational performance, are likely to support a re-rating.

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BEL Q4 Earnings

BEL reported an 18% YoY rise in net profit to Rs 2,127 crore for Q4FY25, compared with Rs 1,797 crore a year ago. Revenue from operations rose 7% to Rs 9,150 crore, up from Rs 8,564 crore in the same period last year.

The company's total income increased to Rs 9,344.23 crores in the quarter under review from Rs 8,789.51 crore in the year-ago period.

On a sequential basis, PAT jumped 62% from Rs 1,312 crore in Q3FY25, while revenue surged 59% from Rs 5,771 crore. EBITDA grew 23.2% YoY to Rs 2,816 crore, with margins expanding to 30.8% from 26.7% a year earlier.

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BEL shares price performance

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