Bharat Electronics stock: UBS raises target to INR 550

UBS has added Bharat Electronics to its APAC Key Call List and raised its price target, giving investors a more positive view of the Indian defence-electronics manufacturer. In a report cited by CNBC TV18 on Thursday, November 12, UBS raised its target from INR 500 to INR 550 and maintained its Buy recommendation.

UBS backs medium-term growth

UBS expects Bharat Electronics' revenue and EBITDA to expand at an 18% compound annual growth rate from fiscal 2027 through fiscal 2030. The bank said the market underestimates the company's medium-term earnings potential, while its competitive position and earnings quality support the positive view.

The analysis also points to more than INR 2 lakh crore of orders won over the past decade. UBS expects improved earnings visibility and limited downside risks for margins as the company executes its defence programme pipeline.

Order pipeline remains central

Bharat Electronics reported September-quarter revenue growth of 27%, above the 15% analyst poll expectation cited by CNBC TV18. Its trailing 12-month order book stood at INR 68,720 crore, while management remained optimistic about securing INR 55,000 crore of orders in fiscal 2027.

The order pipeline is the main support for the bullish view, but execution and the timing of new awards remain important for the outlook. UBS said the recent share-price correction created an attractive entry point, an assessment investors should weigh against project timing and valuation risks.

India's BSE Sensex provides the wider market backdrop for Indian equities.

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