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Investing.com - Axis Capital (NYSE:AXS) has upgraded Bharat Electronics (NSE:BAJE) Ltd (BOM:BHE) from Reduce to Add and raised its price target to INR421.00 from INR400.00.
The upgrade follows what Axis Capital described as "top notch" performance by the defense electronics company across all metrics in FY25, including execution, margins, receivable management, return on equity, and order inflow outlook.
Axis Capital projects approximately 14% earnings per share compound annual growth rate over FY25-28E, factoring in an expected large defense order win for the Quick Reaction Surface-to-Air Missile (QRSAM) system.
The research firm noted that the recently announced "Mission Sudarshan Chakra," a multi-layered air and missile defense system integrated with offensive weapons, could enhance the company’s order prospects over the medium term.
Bharat Electronics’ export outlook has improved following proof of product effectiveness during the India-Pakistan conflict, while the likelihood of a higher-than-normal increase in India’s defense budget also supports the upgraded rating, according to Axis Capital.
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