Bharat Electronics Ltd., incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 26558.86 Crore) operating in Defence sector.
AgenciesPromoters held 51.1 per cent stake in the company as of Sept 30, 2020, while FIIs held 9.6 per cent, DIIs 31.6 per cent and public and others 7.7 per cent.
Motilal Oswal has given a buy rating to Bharat Electronics with a target price of Rs 130. The share price moved up by 4.80 per cent from its previous close of Rs 103.10. The stock’s last traded price is Rs 108.05.
Bharat Electronics Ltd., incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 26558.86 Crore) operating in Defence sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 3168.36 Crore, up 93.02 % from last quarter Sales of Rs 1641.46 Crore and up 18.95 % from last year same quarter Sales of Rs 2663.57 Crore Company reported net profit after tax of Rs 395.96 Crore in latest quarter.
Investment Rationale On the back of strong performance in 1HFY21, the brokerage increases FY21E/FY22E/FY23E EPS by 5%/3%/6%. We forecast revenue/EBITDA/PAT CAGR of 11%/7%/8% over FY20-23E. At the CMP, the stock trades at FY22E/ FY 23E P/E of just 12x/11x despite having a RoE/RoCE of ~17%/18%, dividend yield of ~3.5% and FCF yield of 5-7%. It maintains Buy rating, but raise the TP to INR130/share from INR116/share earlier, based on 15x Mar’22E EPS v/s oneyear forward long-term average multiple of 15.8x.
Promoter/FII Holdings Promoters held 51.1 per cent stake in the company as of Sept 30, 2020, while FIIs held 9.6 per cent, DIIs 31.6 per cent and public and others 7.7 per cent.
Agencies
