BEL Shares : Bharat Electronics Limited (BEL) shares are reeling from a major disclosure made on Tuesday, triggering a wave of selling pressure. The revelation about the company’s FY 2025 orderbook has led to an over 7.5% drop in the stock over two trading days. What exactly did BEL disclose that caused this panic? Should investors offload their shares in a hurry, or is there hope for a recovery? Let’s break it down.
BEL Stock Tanks 7.5% in Two Days
The downward spiral for BEL shares began on Tuesday, April 1, and continued into today. On April 1, the company released its FY 2025 orderbook figures, which fell short of expectations. This led to a 3% drop by the close of that day. The selling pressure persisted on April 2, with the stock slipping 7% intra-day to a low of ₹274.45. However, buying at lower levels cushioned the fall, and it ended the day at ₹282.45 on the BSE, down 3.27%.
Looking at its one-year performance, BEL was at a 52-week low of ₹212.60 on April 2, 2024, and hit an all-time high of ₹340.50 on July 10, 2024. At its current price, it’s trading 15% below that record high, highlighting its recent weakness.
How Much Order Did BEL Secure in FY25 ?
In an exchange filing on April 1, BEL disclosed that it secured orders worth ₹18,715 crore in FY 2025. This figure disappointed investors, as it was well below the company’s estimated ₹25,000 crore. On a brighter note, BEL’s turnover (provisional and unaudited) for the year jumped 16% to ₹19,820 crore, surpassing its 15% growth target. This included $10.6 crore in export sales, up 14% year-on-year.
As of April 1, 2025, BEL’s orderbook stands at ₹71,650 crore, with export orders worth $35.9 crore. While this robust backlog hints at future potential, the weaker-than-expected order inflow has rattled the market.
Analyst Views Buy or Sell ?
Among the 30 analysts tracking BEL, 25 have given a ‘Buy’ rating, signaling confidence in its long-term prospects. Global brokerage Macquarie has rated it ‘Outperform’ with a target price of ₹350, suggesting significant upside from current levels. In contrast, domestic brokerage Kotak Institutional Equities has a ‘Sell’ rating with a target of ₹260, urging caution. Only 2 analysts recommend selling, indicating a largely positive outlook. The buying at lower levels today also suggests some investors see this dip as an opportunity.
What Should Investors Do ?
The current slide in BEL shares stems from the underwhelming FY25 orderbook numbers, but its strong turnover growth and hefty order backlog offer hope for a rebound. For long-term investors, the ‘Buy’ ratings from 25 analysts and a potential target of ₹350 make it worth holding or buying on dips. However, short-term volatility could persist, so those with low risk tolerance should tread carefully.
Kotak’s ‘Sell’ rating and ₹260 target serve as a warning for those seeking quick profits. Before making a move, consult your financial advisor. Is this dip in BEL shares a golden opportunity or a red flag? Share your thoughts in the comments below
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investing in the stock market involves risks, so consult your-financial advisor before making any decisions.
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