Amidst volatile Sensex and Nifty, one zero-debt defence PSU company has continued to hold a bullish momentum. This defence stock among the large-caps and has climbed by a whopping 38.50% on the NSE year-to-date.
In the long term, this heavyweight company has given multi-fold returns and rewards. Who is it? It’s none other than Bharat Electronics (BEL), which is trading near its 52-week high. Should you buy BEL stock after Dussehra cheer?
Bharat Electronics Share Price:
Currently, on NSE, BEL share price stood at Rs 407.05 apiece, up by 1% on October 1st. The company’s market cap is around Rs 2,97,544.55 crore, making it the second largest defence company after HAL. The stock is currently nearing its 52-week high of Rs 436 apiece.
In past five sessions, BEL shares zoomed by 2%. While its one-month and six-monthly performance has been positive by 8.09% and 44.14% so far on NSE. YTD, the stock rallied 38.50%, outperforming HAL and Nifty who have gained by 15.3% and 5%.
Meanwhile, in a year, the stock advanced by over 46%. But in the long run, BEL zoomed by 1,170.84% in its 5-year performance. Not just that, BEL’s all-time gains is breathtaking by 184,922.73%. Once upon a time, BEL stock stood at Rs 0.22 on January 1, 1999.
BUY BEL Share Price After Dussehra?
BEL is a Dussehra pick of brokerage Choice. Analysts at Choice, highlighted that the stock is currently displaying a strong bullish setup on the weekly chart, forming a classic Flag and Pole pattern. After a decisive breakout from a prolonged consolidation range, the stock has exhibited a sharp upward movement forming the ‘pole’, followed by a brief consolidation forming the ‘flag’.
This bullish continuation pattern indicates a shift in market sentiment from neutral to strongly positive. The current price action near Rs 404.50, supported by consistent volume, reflects strong buying interest, as per the analysts.
Technically, Choice’s analysts believe that the stock remains robust as it is trading well above its 20-day, 50-day, 100-day, and 200-day moving averages – a key indicator of sustained upside momentum. Immediate resistance is seen around the Rs 410 mark, which aligns with a trend line hurdle. A decisive breakout and close above this level could serve as a strong bullish trigger, potentially opening up further upside towards Rs 444 and Rs 480 in the medium to long term.
BEL’s Relative Strength Index (RSI) is currently at 62.10, favoring the bulls. The rising RSI trend adds confidence to the strength of this rally, suggesting buyers continue to dominate.
Given the bullish chart structure and supportive technical indicators, the analysts suggested that investors may consider initiating long positions at the current market price of Rs 404.50. Dips towards Rs 395 can be seen as buying opportunities to accumulate further.
On the downside, they said a strong support lies at Rs 380; a breach below this level could act as a short-term risk to the rally. However, as long as the stock sustains above this zone, the broader bias remains positive. This setup offers a favorable risk-reward scenario for positional traders looking to capitalize on a breakout-driven momentum rally.
Hence, Choice analysts have set Rs 444 and Rs 480 target on BEL.
However, it is Motilal Oswal who has set the highest target on BEL to the tune of Rs 490.
In their research note dated September 29, analysts at Motilal said, “As per press reports, the Indian Army has issued a tender to Bharat Electronics (BHE) for the QRSAM project, also known as Anant Shastra, worth INR300b. The Indian Army will procure 5-6 regiments of the indigenously developed ‘Anant Shastra’ surface-to-air missile weapon systems and BHE will be the lead integrator. This order enhances BHE’s order book to more than INR1t now.”
Along with this order, Motilal’s analysts also expects BHE to benefit from orders for next-generation corvettes, electronics warfare, follow-on orders for electronics for 97 Tejas Mk1A, loitering munition programs, and export opportunities. Hence, they said, “We maintain our estimates and reiterate BUY on BHE with a TP of INR490, based on 45x Sep’27E earnings.”
BEL Corporate Actions:
The heavyweight defence company holds a strong record of rewarding 3 bonus shares and 51 dividends in its history so far. The company’s shares had split only once.
Bonus Issues: BEL has rewarded three bonuses to investors in less than 10 years. The first bonus issue of 2:1 took place in September 2015, followed by another bonus issue of 1:10 in September 2017. The company also rewarded 2:1 bonus issues in September 2022.
Stock Split: BEL shares have split only once in its life time. The first stock split ratio was of 1:10 and its record date was on March 17, 2017. The face value of Rs 10 each was split to Re 1 each.
Dividends: BEL has distributed 51 dividends since August, 2003, as per Trendlyne data. In the past 12 months, the company rewarded dividends of Rs 2.40 per share. Its current dividend yield is at 0.59%.