Defense PSU Stock Recommended by Bajaj Broking for Short-Term Gains

Defence PSU Bharat Electronics Poised for Further Upside

Bharat Electronics, a defence public sector undertaking (PSU), has emerged as a strong technical play with an improving price structure and sustained buying interest. According to Bajaj Broking, the stock is positioning itself for further upside in the coming months.

The defence stock has been on an uptrend in recent times, rising 7% in 1 month, 7% in 3 months, and 45% in 1 year. However, it fell 2% to ₹441.10 in intra-day deals today. The PSU stock hit its 52-week high of ₹473.25 in March 2026 and its 52-week low of ₹293.70 in April 2025. The stock has given multibagger returns in the long term, soaring almost 950% in 5 years.

Bullish Technical Setup Signals Further Upside

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

According to Bajaj Broking, the stock is currently trading in a structural uptrend, forming higher highs and higher lows across timeframes, indicating continued strength and trend sustainability. The entire price movement over the past eight months has been contained within a rising channel, reflecting sustained demand at elevated levels.

On shorter timeframes, the stock has entered a consolidation phase after a sharp rally in the first three weeks of April and is now nearing a breakout from a bullish flag pattern, suggesting a continuation of the uptrend and offering a fresh entry opportunity. The brokerage has recommended a buying range of ₹440–450 for BEL, with a target price of ₹495 over a six-month horizon, implying a potential upside of around 11%.

Bajaj Broking's Recommendation

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Bajaj Broking expects the stock to extend its upward trajectory towards ₹495, which coincides with the 123.6% external retracement of the previous decline (₹473–400) and the upper band of the rising channel. On the downside, immediate support is placed at ₹420–430 levels, which aligns with the 50-day EMA and the 61.8% retracement of the recent rally (₹400–464). Momentum indicators remain favourable, with the daily MACD sustaining above its nine-period average, reinforcing a positive bias on the stock.

Bharat Electronics Q4 Results

Bharat Electronics, the Navratna PSU under the Ministry of Defence, is scheduled to announce its Q4 FY26 results on April 28, with expectations of a strong operational performance driven by robust execution and order inflows. The company reported a 20.8% year-on-year rise in net profit to ₹1,590 crore for the period, compared to ₹1,311 crore in the corresponding quarter last year. Revenue for the quarter increased 23.7% to ₹7,122 crore from ₹5,756 crore a year ago, reflecting strong business momentum.