BEL Beat Q4 Estimates On Better Margin, Says JPMorgan

Bharat Electronics Ltd. beat fourth quarter estimates due to better margin, according to JPMorgan. The Bengaluru-headquartered aerospace company reported a 30.8% Ebitda margin, which is ahead of JPMorgan's estimate of 26%, and consensus estimate of 25.3%.

The brokerage has an 'overweight' rating on Bharat Electronics Ltd. with a target price Rs 396, which implies a 9.09% downside from Monday's close.

• Revenue up 6.8% to Rs 9,149 crore versus Rs 8,564 crore (Bloomberg estimate: Rs 8,890 crore).

• Ebitda up 23% to Rs 2,815.5 crore versus Rs 2,287.5 crore (Bloomberg estimate: Rs 2,250 crore).

• Margin at 30.8% versus 26.7% (Bloomberg estimate: 25.3%).

• Net profit up 18.4% to Rs 2,127 crore versus Rs 1,797 crore (Bloomberg estimate: Rs 1,752 crore).

• Other expenses down by 33%, which aided Ebitda.

Bharat Electronics also beat JPMorgan's net profit estimates by 14% in the fourth quarter. The company's cumulative order flow was at Rs 18,400 crore, with the order book touching Rs 71,650 crore.

Its earning call is scheduled at 10:00 a.m. on Tuesday. JPMorgan will review their estimates after hearing management commentary. The brokerage will watch out for any comment on order flows, revenue growth, and margin profile, it said.