Defence stock Bharat Electronics (BEL) has been hitting 52-week lows for the last three consecutive sessions. BEL shares dropped 1.7% to hit a new 52-week low of ₹360.80 in intraday trade on Friday, 9 October, before ending with a modest gain of 0.38% at ₹368.50, snapping their two-day losing run.
In the last one year, the stock has lost 10% compared to a 12% fall in the equity benchmark Sensex and a 5% gain in the BSE Industrials index. The stock has suffered a bigger loss of 16% in a shorter timeframe of 6 months. The Sensex has declined 5%, while the BSE Industrials has jumped 7% in the same period.
Over the last three and five years, however, the defence stock has delivered multibagger returns of 172% and 453%, respectively.
BEL’s FY26 financial performance
BEL is a Navratna defence public sector undertaking (PSU). As per the company’s annual report for the financial year 2026 (FY26), its net worth improved to ₹23,698 crore from ₹19,698 crore in the previous year.
As of 1 April 2026, its order book stood at ₹73,882 crore. The company claimed it achieved its highest turnover of ₹26,680 crore during the year, growing by 16% year-on-year (YoY).
Profit after tax (PAT) rose grew 14.38% YoY to ₹6,048 crore, while EBITDA increased 18.4% YoY to ₹8,015 crore for the year. EBITDA margin improved to 30% from a range of 22% to 29% over the past years.
The company said it is confident of achieving similar growth in the coming years, and its future growth will be led by defence, exports, and services.
Is a trend reversal on the cards?
Experts largely appear positive about the stock for the long term. In the defence sector, BEL is the top pick of brokerage firm Motilal Oswal Financial Services.
Motilal Oswal has a “buy” recommendation on the stock with a target price of ₹530, as it expects BEL’s revenue growth of 16% YoY in Q2FY27, led by the healthy execution of the opening order book of nearly ₹72,000 crore. Adjusted PAT may increase by 9.1% YoY to ₹1,403.3 crore, as per the brokerage firm.
However, Motilal expects BEL’s margins to fall by 170bp YoY to nearly 27.7% in Q2FY27, due to the execution of a changing product mix.
Ravi Singh, Chief Research Officer from Master Capital Services, underscored that the recent pullback in the stock is a more broad-based selling, and less company-specific and more sector-specific.
“For now, one can hold the stock with a buy on dips strategy. The management has provided 15% margin guidance, which is steady, and has given a ₹55,000 crore order inflow guidance for FY27. So, the overall performance is steady. If one wants to accumulate on dips, buy for a target range of ₹410- ₹413,” said Singh.
However, on the technical front, experts highlight that BEL stock is witnessing a breakdown of its crucial horizontal support near ₹380, reinforcing the prevailing bearish structure on the daily chart.
“The stock has been forming lower highs beneath a descending trend line, indicating persistent selling pressure. The latest decline below ₹380 also signals a potential bearish continuation, with the price trading well below its moving average near ₹406,” said Shitij Gandhi, AVP – Equity Technical Research, SMC Global Securities.
“The immediate support zone lies around the ₹360– ₹350 zone, while sustained weakness could expose lower levels. Only a decisive move back above ₹400 level would be required to improve the technical outlook from medium term perspective. Until then, the bias remains bearish,” said Gandhi.
Deepesh Sarawagi, a technical research analyst at Choice Broking, pointed out that the stock is hovering around crucial support at ₹360, which aligns with its previous higher-low base on the weekly chart after slipping below the 100-week EMA.
“If this base holds, we could see a quick relief pullback toward the ₹380– ₹400 zone, but a clear close below ₹360 opens the door for a deeper slide toward ₹330,” said Sarawagi.
“The weekly RSI is down near 34, showing oversold conditions where a short-term bounce can easily kick in. The stock is feeling pressure after losing the 100-week EMA, and the 20 and 50 EMAs above will now act as immediate hurdles on any rise. However, the broader trend is still protected by the 200-week EMA sloping well below. Getting back above the 100-week EMA is key to stopping the current slide and building a proper base,” Sarawagi said.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
