Valuation: Major beneficiary, limited competition: We expect BEL to deliver strong performance in the coming years given its robust order book, major beneficiary from increasing emphasis on indigenisation, and limited competition. BEL remains our preferred pick in the defence sector on account of its strong manufacturing and R&D; base, good cost control, growing indigenisation, and strong balance sheet with improving return ratios. We have introduced FY2023E numbers in this note. At the CMP, the stock is trading at a reasonable valuation of 16.1x/15.0x/13.4x its FY2021E/FY2022E/...