Bharat Electronics Set to Surge 30% Amid Sensex Inclusion, Says Nuvama

Bharat Electronics' stock price surged 2% to an intra-day high of Rs 416.90 as the company will be added to the Sensex. Nuvama Alternative & Quantitative Research expects $700 million in passive inflows into the new entrants, including BEL, which has a 'Buy' rating with a target price of Rs 385, an upside of 31%. The growth of BEL is expected to be driven by higher localisation, favourable product mix, and cost efficiencies.

Bharat Electronics Limited (BEL) saw its stock price surge 2% to an intraday high of Rs 416.90 on Monday, June 19, 2025, following the announcement of new defense orders worth Rs 585 crore. This recent success boosts BEL's total order inflow for June to nearly Rs 3,500 crore, according to the Economic Times [1].

The company also has a strategic partnership with Tata Electronics, announced on June 6. The two firms signed a memorandum of understanding (MoU) to jointly pursue opportunities in semiconductors and advanced electronics, including chip design, OSAT (Outsourced Semiconductor Assembly and Test), and fabrication. This move aligns with India’s push for self-reliance in high-tech manufacturing [1].

Earlier in June, BEL had announced Rs 537 crore worth of new contracts for advanced communication systems, shipborne equipment, jammers, simulators, and other defense electronics. Additionally, a major Rs 2,323 crore order from Mazagon Dock Shipbuilders and Garden Reach Shipbuilders for base and depot spares to support missile systems on Indian Navy vessels further solidified BEL’s position in the defense sector [1].

The company's stock has been given a 'Buy' rating by analysts, with a target price of Rs 385, an upside of 31%. Nuvama Alternative & Quantitative Research expects $700 million in passive inflows into the new entrants, including BEL, which is expected to be added to the Sensex [2].

BEL’s stock price has gained around 40% year-to-date and delivered an impressive return of 225% over the past two years. The company’s current market capitalisation stands at approximately Rs 1.45 lakh crore. The stock continues to trade above its 20-day, 50-day, 100-day, and 200-day simple moving averages (SMAs), reflecting strong bullish momentum [1].

References:
[1] https://m.economictimes.com/markets/stocks/news/bel-shares-in-focus-after-securing-rs-585-crore-defence-orders-june-tally-nears-rs-3500-crore/amp_articleshow/122014524.cms
[2] https://www.tradingview.com/news/moneycontrol:0d066835a094b:0-stocks-to-watch-today-zen-technologies-nlc-india-bajel-projects-bharat-electronics-granules-india-waaree-renewable-in-focus-on-23-june/