Defence stock BEL rises 13% in March. Should you buy, sell or hold?

Stock Market Today: Defence stock Bharat Electronics (BEL) has risen 13% in March so far despite a volatile market trend.

Bharat Electronics share price had risen to a 52-week high of ₹340.35 in July last year and has corrected significantly from thereon. Bharat Electronics share price touched a recent low of ₹246.40 on the BSE on February 28, 2025, amid a correction seen in the markets. However, the stock has rebounded sharply and is up almost 13% since then, despite volatile markets.

Bharat Electronics order flow

Bharat Electronics share price gained almost 3% on Friday itself following large order flow news. Bharat Electronics on Thursday, March 6, 2025, announced receiving orders worth ₹577 crore.

Since its last disclosure on February 20, 2025, Navratna Defence Public Sector Undertaking, BEL, has secured additional orders which comprise airborne electronic warfare products, advanced composite communication systems for submarines, doppler weather radar, train communication systems, radar upgradation, spares, services etc. The orders received since February 20 are worth ₹577 crore, as per the company.

With these, the total accumulated orders received by BEL during the current financial year stand at ₹13,724 crore.

Bharat Electronics Dividend

In addition to order flows, investor sentiments have also got a boost by dividend announcements. Board of Directors of the Company, at its meeting held on March 5, 2025, declared an interim dividend of ₹1.50/- per equity share of ₹1/- each fully paid up (150%) for the financial year 2024-25. The interim dividend will be paid within 30 days from the date of declaration, as per the company. The Board has fixed Tuesday, March 11, 2025, as the Record Date for the purpose of payment of interim dividend on equity shares for the Financial Year 2024-25.

Bharat Electronics- Analyst views

Recent stock price correction along with the broader sector and market correction offers a good entry point to own a quality defence stock with market leadership position in the defence electronics segment, said Antiqu Stock Broking. 

The brokerage believes Bharat Electronics is all set to deliver strong double digit earnings growth (21% CAGR) over FY24-27E and hence it has maintained its positive stance on the long-term prospects of BEL as it has over the years developed multiple levers of growth by establishing robust infrastructure, by strong relations with government entities, and also by diversifying into non-defence businesses to create new growth avenues. Antique thus maintained a ‘BUY’ rating on the stock with a target price of ₹376.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.