Contract for 7 squadrons of Akash missiles over 3 years improved earnings visibility for the company, said the brokerage house.
Shares of Bharat Electronics rallied more than 4 percent intraday on September 16 after global brokerage house Morgan Stanley said the stock price will rise relative to Country Index.
The stock rallied more than 30 percent in last nine months thanks to the defense orders from the government. It was quoting at Rs 111.55, up Rs 2.85, or 2.62 percent on the BSE at 1008 hours.
Morgan Stanley believes company's share price will rise relative to the Country Index over the next 60 days.
Contract for 7 squadrons of Akash missiles over 3 years improved earnings visibility for the company, said the brokerage house. Hence it retained overweight call on the stock with a target price at Rs 116 per share, implying 6.7 percent potential upside from current levels.
Morgan Stanley said it awaited for clarity, whether annual maintenance contract is over & above the contract value declared.
Bharat electronics signed contract with Ministry of Defence for procurement of seven Squadrons of Akash Missile System for Indian Air Force. The total value of the contract is Rs 5,357 crore.
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