Imagine owning a defence stock that’s delivered a staggering 188,672% return since 1999, carries zero debt, and stands poised to capture massive government orders. For Indian investors seeking exposure to the nation’s defence modernization boom, Bharat Electronics Limited (BEL) is emerging as a compelling opportunity as it trades just ₹21 away from its 52-week high of ₹436, backed by fresh Defence Acquisition Council (DAC) approvals worth ₹79,000 crore. Discover how this PSU giant could reshape your defence portfolio in 2025.
Defence PSU Stock BEL Performance: Stellar Returns Across Timeframes
BEL closed at ₹415.30 on NSE after market hours on October 27, 2025, with a robust market capitalization of ₹3,03,575.11 crore, cementing its position as India’s second-largest defence PSU after HAL. The stock has significantly outperformed both Nifty and the defence index with year-to-date gains of 41.3% and one-year returns of 54%. Long-term investors feel the wealth effect more profoundly—five-year gains stand at 1,305.83%, while the adjusted all-time return from ₹0.22 in January 1999 is a mind-boggling 188,672.73%.
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DAC Approval: ₹79,000 Crore Defence Boost for BEL
On October 23, 2025, the Defence Acquisition Council chaired by Raksha Mantri Rajnath Singh approved capital procurement proposals worth approximately ₹79,000 crore for the Indian Army, Navy, and Air Force. BEL is well-positioned to capture orders for electronic warfare systems, radars, naval sensor suites, Ground Based Mobile ELINT Systems (GBMES), and Electro Optical Infra-Red Search and Track Systems. According to Choice Equity Broking research, electronic components contribute approximately 30-60% of the cost of defence equipment, giving BEL a strategic advantage as a key supplier to all arms of the armed forces.
Brokerage Targets Signal Strong Upside
Leading brokerages are bullish on BEL’s prospects post-DAC approval. Motilal Oswal has issued a BUY recommendation with a target price of ₹490, representing an 18% upside from current levels, while Choice Equity Broking has set an ambitious high target of ₹500. The stock’s technical metrics reveal a PE ratio of 55.17, dividend yield of 0.58%, and beta of 1.84, reflecting its premium valuation and higher volatility compared to the broader market.
BEL’s Shareholder Rewards: Dividends, Bonuses, and Split
| Corporate Action | Details | Impact for Investors |
|---|---|---|
| Dividends | 51 dividends since August 2003; ₹2.40/share in last 12 months | Consistent income generation with 0.58% yield |
| Bonus Issues | 3 bonuses: 2:1 (Sept 2015), 1:10 (Sept 2017), 2:1 (Sept 2022) | Enhanced liquidity and wealth multiplication |
| Stock Split | 1:10 split in March 2017 (₹10 to ₹1 face value) | Improved affordability and trading volumes |
| Debt Status | Zero debt for 5+ consecutive years | Strong balance sheet and financial stability |
Defence PSU Stock BEL debt-free status since 2020 positions it advantageously to reinvest in R&D and pursue aggressive order execution without financial strain.
Final Thoughts: Capitalizing on India’s Defence Modernization
Smart investors recognize that BEL’s zero-debt balance sheet, consistent dividend history, and strategic positioning in India’s ₹79,000 crore defence procurement cycle create a powerful wealth-building narrative. With the stock trading below its 52-week high and quarterly results scheduled for October 31, 2025, the timing favors those seeking long-term exposure to India’s defence sector growth. Visualize your portfolio benefiting from the next wave of “Make in India” defence contracts—BEL offers both patriotic pride and profit potential.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Market conditions are subject to change, and past performance does not guarantee future results. Always consult a SEBI-registered financial advisor before making investment decisions. May contain affiliate links at no extra cost to you.
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