BEL shares a ‘buy’ after 152% rally in 12 months? An analyst expects it to touch ₹400

NSE

Shares of Bharat Electronics Ltd., the state-run defence equipment manufacture have gained 152% in the last 12 months. In 2024, the stock has risen 66%.Technical analyst Manas Jaiswal now believes that the stock has the potential to touch levels of ₹400 going forward.Answering a viewer query on CNBC Awaaz, Jaiswal said that the stock has seen a good upmove over the last two years.BEL shares had declined 20% on June 4, the day of the Lok Sabha election results, falling to as low as ₹230. But Jaiswal said that the stock took support at the right levels and has recovered from there. The shares of BEL have gained in all eight subsequent trading sessions since June 4.Jaiswal alluded to the fact that BEL has resumed making higher tops and higher bottoms on the charts, which is a positive indicator.He further added that levels of ₹320 and ₹325 are crucial for Bharat Electronics and once those get taken out on a sustained basis, the stock will see the next leg of upmove.In the next leg of upmove, Jaiswal believes that the stock can test levels of ₹375 to ₹400 on the upside. He advised the viewer to remain invested in the stock, keeping a stop loss of ₹265.To recover the losses from June 4, the stock needs to cross levels of ₹318, which is the lower end of Jaiswal’s ₹320 - ₹325 range that he had highlighted as a critical zone.Shares of Bharat Electronics have given positive annual returns every single year since 2018, during which it had declined 52%.Recently, brokerage firm Motilal Oswal in a note said that said that BEL’s order inflows for the financial year 2024 were far ahead of its guidance, thereby hedging it against any slowdown in order inflows in financial year 2025.Shares of BEL are trading 2% higher at ₹306.7.