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.

Bharat Electronics Q4 Highlights (Consolidated, YoY)

• 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.

Bharat Electronics Share Price Today

Bharat Electronics Ltd. share price rose 1.72% to Rs 370 apiece. It erased gains to trade 0.23% down at Rs 363.75 apiece as of 9:27 a.m., as compared to a 0.03% advance in the NSE Nifty 50.

The stock rose 32.35% in 12 months, and 23.86% on year-to-date basis. Total traded volume so far in the day on NSE stood at 0.39 times its 30-day average. The relative strength index was at 78.64.

Out of 28 analysts tracking the company, 24 maintain a 'buy' rating, two recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 5.9%.