BEL - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Rating: 4.2

🛡️ Long-Term Investment Potential

Bharat Electronics Ltd (BEL) is a strong candidate for long-term investment, backed by robust fundamentals and strategic positioning in the defense sector.

🔍 Valuation & Growth Metrics

P/E of 51.6 is below the industry average of 68, suggesting relative undervaluation.

PEG Ratio of 1.69 is acceptable for a high-growth PSU, though not deeply undervalued.

Price-to-Book ~14.2x (₹388 / ₹27.3) is high, but justified by strong ROE and zero debt.

💰 Profitability & Financial Strength

ROCE (39%) and ROE (29.3%) are exceptional, indicating efficient capital deployment.

Debt-to-Equity: 0.00 → zero leverage, a major plus for long-term stability.

Dividend Yield: 0.57% → modest but consistent.

📉 Technical Indicators

RSI at 37.7 → nearing oversold zone, potential bounce.

MACD negative → short-term bearish momentum.

Trading near 50-DMA (₹391) and well above 200-DMA (₹330) → long-term uptrend intact.

📈 Institutional Sentiment

FII holdings increased by 1.01%, showing foreign investor confidence.

DII holdings slightly reduced, but not alarming.

🎯 Ideal Entry Price Zone

Entry Zone Rationale

₹360–₹380 RSI oversold, near support zone

< ₹350 Strong buy zone if market correction deepens

This range offers a good margin of safety and aligns with technical support levels.

🧭 Exit Strategy / Holding Period

If you already hold BEL

Holding Period: Minimum 5–7 years, given its strategic role in defense and consistent earnings.

Exit Strategy

Partial exit if price crosses ₹450–₹475 without EPS growth.

Full exit if ROE drops below 20% or PEG rises above 2.5.

Hold if PEG improves to <1.5 and quarterly profits continue to grow.

Would you like a comparison with HAL or Mazagon Dock to see how BEL stacks up against other defense PSUs? 🚀

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