Anand Rathi recommended hold rating on Bharat Electronics with a target price of Rs 120 in its research report dated July 10, 2020.
Anand Rathi 's research report on Bharat Electronics
Bharat Electronics Ltd. (BEL) reported consolidated revenues of Rs.58.16 billion in Q4FY20, reflecting a solid increase of 49.2% year over year (y/y) driven by strong execution. EBITDA jumped 56% y/y to Rs.14.94 billion in the quarter while EBITDA margin came in at 25.7% as against 24.6% in the previous year quarter. The quarter witnessed increase in raw material cost, offset by lower other expenses. Overall, Profit after tax (PAT) surged 74.3% y/y Rs.10.47 billion. The company has not shifted to new low tax regime given the benefits from its deferred tax asset book. For FY20, revenues increased 6.6% y/y to Rs.129.68 billion while PAT declined 3.3% y/y to Rs.18.24 billion.
Outlook
We have updated our estimates factoring in latest numbers and continue to remain positive on the company and maintain BUY rating with a target price of Rs.120 per share.
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