Shares of Bharat Electronics Limited (BEL) rose more than 7 percent in early trade on Wednesday, April 1, following a ₹1,950 crore order from the Ministry of Defence for the Indian Air Force (IAF). The gain ended a three-session decline in the stock.
At 11:17 AM on the BSE, BEL shares were trading at ₹422.55, up 5.48 percent. Market participants and analysts indicated that the recent movement has strengthened the potential for long-term returns in the stock.
Ministry of Defence awards ₹1,950 crore radar contract
The Ministry of Defence has signed a ₹1,950 crore contract with Bharat Electronics Limited for the procurement of two mountain radars and associated infrastructure for the Indian Air Force. The official statement said the contract includes required equipment and supporting infrastructure.
The mountain radar is based on indigenous technology and has been designed and developed by the Electronics and Radar Development Establishment under the Defence Research and Development Organisation (DRDO). Manufacturing will be undertaken by Bharat Electronics Limited.
Recent stock movement and technical levels
BEL shares recently touched an all-time high of around ₹473 before declining to nearly ₹400 due to profit booking. Analysts stated that the decline was temporary and that the stock has since shown strength above its 200-day moving average, indicating a sustained upward trend.
They added that if the current momentum continues, the stock could move towards ₹440 near its 20-day moving average and may subsequently retest its previous high of ₹473.
Support level and analyst commentary
Analyst Harish Jujare stated that ₹390 is a key support level for BEL. He noted that as long as the stock remains above this level, the prevailing market trend is expected to continue. He also said that the recent order and underlying fundamentals support the potential for long-term returns.
He added that investors should monitor market volatility and global conditions.
Position in the defence sector
Bharat Electronics Limited is a government-owned defence company engaged in the manufacturing of radar systems, electronics, and other defence equipment. Large government orders and projects based on indigenous technology contribute to the company’s market capitalisation and long-term earnings visibility.
Analysts stated that incoming defence orders and government projects provide a stable source of revenue for BEL, supporting price stability and investor participation.
