More upside ahead for Bharat Electronics

Initiatives such as diversification into new businesses support the investment rationale

With the search for defensives becoming more difficult given macro and market uncertainties, Bharat Electronics Limited or BEL is among the few stocks that stand out. Given that it is on the buy list of most brokerages, it has made investors richer by 21 per cent over the past three months. Operating in the defence industry, with stronghold in missiles and radar technology, BEL offers a hedge against possible ramifications from the recent note ban. That its earnings do not depend on the traditional capital expenditure cycle, is an added advantage for investors. Recently Credit Suisse initiated coverage on BEL