An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.
ICICI Direct's research report on Bharat Electronics
Bharat Electronics (BEL) reported revenues at Rs 6908 crore, growth of 19% YoY (vs. I-direct estimate of Rs 6485 crore), on the back of normalising supply chain and execution business operations. For FY21, revenue came in at Rs 14063.8 crore up 8.8%, YoY. Absolute EBITDA for the quarter came in at Rs 1970.6 crore (vs. our estimate of Rs 1529.8 crore), up 32.9% YoY. EBITDA margin came in better than estimated at 28.5% (above our estimate of 23.6%) improving ~300 bps YoY, owing to reduced other operating expenses and employee expenses. Consequently, PAT came in at Rs 1352.4 crore, up 30.7% primarily due to higher execution, improved margins. Also, other income was up 102% to Rs 57 crore, YoY.
Outlook
We revise our target price to Rs 205, 19x on FY23E EPS (earlier TP Rs 170) and reiterate BUY.
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