Motilal Oswal recommends Bharat Electronics buy with ₹540 target
Motilal Oswal is recommending Bharat Electronics (BHE) as a buy, setting a target price of ₹540.
This call comes after BHE's strong Q2 FY27 results: revenue, profits, and margins all beat expectations thanks to a solid mix of defense projects.
The only downside? Base order inflows fell 31% year over year as ordering is yet to ramp up meaningfully from the Ministry of Defence (MoD).
BHE eyes ₹30,000cr QRSAM, ₹20,000cr corvettes
BHE is eyeing some big future deals, like the long-awaited QRSAM project worth ₹300 billion and a possible ₹200 billion contract for next-generation corvettes.
Motilal Oswal expects BHE's revenue and profits to keep growing at about 15% per year through FY29.
Even with recent order delays, the company's healthy cash flow and strong OCF/FCF, led by control over working capital, support that upbeat target price.