India's Bharat Electronics jumps after JPMorgan terms it top defence pick

Bharat Electronics

13/05/2025 06:55

** Shares of Bharat Electronics BAJE.NS jump 3.7% to 334.75 rupees apiece, topping gains in the Nifty 50 index .NSEI

** JP Morgan says BAJE is its preferred pick in India's defence sector

** Adds,  India-Pakistan conflict last week underlines skills and capabilities of the defence manufacturer

** "It is a pivotal moment for widespread recognition of BEL's capabilities in the field of air defense systems, integrated command and control systems, surface-to-air missiles, radars, surveillance systems and electronics warfare suits," brokerage says

** Reiterates "overweight" on BAJE and raises target price to a Street-high of 396 rupees from 343 rupees, implying an upside of 22.7%

** Says BAJE will likely receive orders worth 250 billion rupees to 300 billion rupees ($2.9 billion to $3.5 billion) in fiscal year 2026 for quick reaction surface To air missiles in addition to regular orders

** BAJE shares up 10.1% in 2025 so far, outperforming benchmark Nifty 50's .NSEI 4.9% rise, exchange data

 ($1 = 84.9100 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))