Bharat Electronics Limited Just Recorded A 8.0% EPS Beat: Here's What Analysts Are Forecasting Next

Bharat Electronics Limited (NSE:BEL) just released its first-quarter report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 5.6% to hit ₹42b. Statutory earnings per share (EPS) came in at ₹1.08, some 8.0% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Bharat Electronics

Following the latest results, Bharat Electronics' 14 analysts are now forecasting revenues of ₹236.1b in 2025. This would be a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.0% to ₹6.32. In the lead-up to this report, the analysts had been modelling revenues of ₹234.4b and earnings per share (EPS) of ₹6.16 in 2025. So the consensus seems to have become somewhat more optimistic on Bharat Electronics' earnings potential following these results.

The consensus price target rose 10% to ₹337, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Bharat Electronics, with the most bullish analyst valuing it at ₹390 and the most bearish at ₹200 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Bharat Electronics' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 14% per year. Bharat Electronics is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bharat Electronics following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bharat Electronics going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Bharat Electronics you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com