Morgan Stanley maintains ‘Overweight' on BEL, lifts target to Rs 418 on long-term growth clarity
By Markets Desk Published on May 21, 2025, 08:26 IST
Morgan Stanley has reiterated its 'Overweight' rating on Bharat Electronics Ltd (BEL), raising the target price to ₹418. The brokerage highlighted BEL's execution edge, supply chain resilience, and robust order pipeline as key strengths.
In Q4FY25, BEL posted a 18.4% YoY growth in net profit, with margin improving to 30.8%. The company now targets 15–17.5% revenue CAGR over the next five years, followed by 20% growth thereafter.
Morgan Stanley noted BEL's FY26 order inflow guidance at ₹27,000 crore (excluding QR-SAM), and expects the company's 27% margin target to be comfortably achievable given current operating leverage. Compared to capital goods peers, BEL offers more consistent earnings and superior RoE, the note added.
Disclaimer: This article is based on the brokerage report by Morgan Stanley. It does not constitute investment advice.
Markets Desk at BusinessUpturn.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Entrepreneur
an hour ago
- Entrepreneur
MakeMyTrip Raises $3.1 Billion to Cut Stake of Chinese Backer Trip Group
he transaction, completed just days after the company's fundraising plans were announced, marks the largest capital raise by a new-age tech firm in Asia-Pacific since Paytm's $2.5 billion IPO in 2021 You're reading Entrepreneur India, an international franchise of Entrepreneur Media. MakeMyTrip has raised $3.1 billion through a combination of convertible notes and a primary share offering in a landmark deal aimed at reducing the stake held by its Chinese investor, Trip Group. The transaction, completed just days after the company's fundraising plans were announced, marks the largest capital raise by a new-age tech firm in Asia-Pacific since Paytm's $2.5 billion IPO in 2021. The Gurugram-based travel platform sold 18.4 million new ordinary shares at $90 each, generating $1.66 billion from its primary follow-on equity offering, as per FE. The share price was slightly below the June 17 closing rate of $91.49. The remaining $1.4 billion came from a five-year convertible senior notes issue, offered at a 0 per cent coupon with a 35 per cent conversion premium, according to a LinkedIn post by Kamal Yadav, managing director of investment banking at Morgan Stanley. "On June 17, 2025, after the close, MakeMyTrip priced $3.1 Bn concurrent registered primary equity follow-on and 144A convertible bond (Post-Shoe)," Yadav wrote. "Together [they] represent APAC's largest concurrent offering of equity follow-on and convertible notes since 2022." Morgan Stanley led the offering as the primary bookrunner and stabilization agent. The capital raised is not intended for business expansion or operational investment but will be used entirely to repurchase shares from Trip Group. This move is part of a broader shift in MakeMyTrip's ownership structure. MakeMyTrip's filings with the U.S. Securities and Exchange Commission (SEC) indicate that Trip Group's ownership in the company will now be reduced to between 16.9 per cent and 19.99 per cent, down from 45.95 per cent. Despite the significant dilution, Trip Group remains the largest minority shareholder. The repurchase agreement between MakeMyTrip and Trip Group was signed on June 16, one day before the company officially confirmed the fundraising plans. Initially, the company planned to issue 14 million shares but later increased the offering to 18.4 million. While the company has yet to issue an official announcement confirming the closure of the deal, it has filed the details with regulators.
Yahoo
an hour ago
- Yahoo
US attack on Iran adds to economic uncertainty
By Ann Saphir (Reuters) -The U.S. bombing of Iran's nuclear sites injected fresh uncertainty into the outlook for inflation and economic activity at the start of a week chock full of new economic data and central banker commentary, including two days of Congressional testimony from Federal Reserve Chair Jerome Powell. The downside of the attacks may be the easiest to see: the potential for a spike in energy prices, a continuation of the hesitancy that has gripped households and businesses and could crimp spending, and the possibility of a response from Iran that materializes well outside the Gulf. With the U.S. economy already expected to slow under pressure from the Trump administration's high import tariffs, a rise in oil prices resulting from the conflict "could provide powerful downward pressure on households' ability to spend... and that could slow GDP even more," Morgan Stanley Chief Economic Strategist Ellen Zentner said on Sunday. There's also the more bullish case, should the attacks pave the way for eventual stability in the region. "Predicting geopolitical developments in the Middle East is a treacherous exercise," analysts at Yardeni Research wrote after the attacks. "However, the Israeli stock market suggests that we may be witnessing a radical transformation of the Middle East now that Iran has been de-nuked." Israel's Tel Aviv main index .TA125 was at an all-time high after the attacks. That said, the U.S. labor market is clearly losing momentum, even as inflation pressures look set to increase. Data due on Thursday for continued jobless claims will factor into the Labor Department's monthly jobs report for June. To date those reports have pointed to a softening but still-solid job market, with the unemployment rate at a relatively low 4.2%, but Fed policymakers keenly watching for signs of deterioration. Data to be published on Friday is expected to show the weakest U.S. consumer spending growth since January. And while it is also expected to show inflation running near the Fed's 2% goal last month, many Fed officials expect tariffs to feed into higher prices in coming months. A sharp rise in energy prices could fan the embers of inflation further. Powell will undoubtedly be pressed on that possibility and for other ramifications of Middle East developments during two days of Congressional testimony, beginning Tuesday at the House Financial Services Committee and continuing on Wednesday at the Senate Banking Committee. Fed officials last week left the policy rate in its current 4.25%-4.50% range, and while policymakers signaled they felt economic conditions would likely warrant a couple of interest-rate cuts later this year, Powell said that forecast comes with little conviction, given all the uncertainty about tariff policy and how the economy will respond. The weekend's U.S.-Iran developments raise new questions about how uncertainty will impact Fed decision-making, wrote Wells Fargo senior economist Sam Bullard. "The markets will be watching for clues as to how the Fed recalibrates the inflationary risks from higher energy prices and tariffs against the disinflationary pressures of slowing growth," he said. Sign in to access your portfolio
Bloomberg
4 hours ago
- Bloomberg
Montage Is Said to Hire Banks for $1 Billion Hong Kong Listing
Chinese chip designer Montage Technology Co. has hired banks for its planned Hong Kong listing that could raise about $1 billion, according to people familiar with the matter. The Shanghai-listed company is working with China International Capital Corp., Morgan Stanley and UBS Group AG on the potential share sale, the people said, asking not to be identified because the information isn't public.
