Hold Bharat Electronics; target of Rs 90: Prabhudas Lilladher

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Bharat Electronics

Bharat Electronics (BEL) reported a strong quarter where revenue grew by 49% YoY leading to high profitability. Perhaps Covid-19 pandemic deferred many orders thereby leading to decline in order Inflows by 59% YoY to Rs28.7bn, during the quarter. Order book stood healthy at Rs520bn providing revenue visibility going ahead. Key projects executed in FY20 include Part supply of Long Range Surface to Air Missile System, Smart City and Homeland Security Business, Integrated Air Command and Control System, Radar Systems, Thermal Imaging Cameras. Management highlighted that execution could have been higher, if not for COVID-19 outbreak and the economic slowdown. Further, it indicated that execution of some of its major projects could not be completed due to force majeure. Company continues its focus to increase contribution from non-defence segment going ahead.

Outlook

We believe near term challenges would continue on the execution and order inflow front due to the pandemic. Given the strong FY20 numbers we have increased our revenue/PAT estimate by 9%/6% for FY21E with largely maintaining our estimate for FY22E. We expect BEL to report revenue/PAT of Rs125bn/Rs131bn and Rs15bn/17bn for FY21E/22E respectively. The stock is currently trading at 14.9x/12.8x FY21E/22E. We maintain Hold rating with revised TP of Rs90.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More