Bharat Electronics Q1 Results Review - Strong Performance On All Fronts : Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Bharat Electronics Ltd. reported a robust set of numbers with healthy operating performance. Revenue came in above our estimates at Rs 35.1 billion (up 13% YoY). Operating leverage benefits led to a ~240 basis points YoY expansion in Ebitda margins. Capex guidance was maintained at ~Rs 6-7 billion which is higher than last three years’ run rate of ~Rs 4.5-5.5 billion. A significant chunk of this capex will go towards fuses, electro optics, EW systems, explosives, etc. The major order of quick reaction surface-to-air missile is expected to be bagged by FY25 and execution will be spread over three-four years. Order inflows came in at Rs 81.8 billion taking its order book to ~Rs 653.6 billion (3.7 times trailing twelve month revenue), providing revenue visibility for next few years. Management maintained FY24 order inflow guidance at ~Rs 200 billion and revenue growth guidance of 15-17%. Given strong tender pipeline, comfortable order book, healthy execution capabilities and diversification into newer business verticals we expect Bharat Electronics to report 17%/19% revenue/profit after tax compound annual growth rate over FY23-25E. At current market price, the stock trades at 27.2 times/ 22.3 times FY24E/25E. Owing to the recent run-up in the stock price, we downgrade it to 'Neutral' (previously 'Add') with a revised target price of Rs 134 valuing it at 23 times FY25E earnings per share..Click on the attachment to read the full report:.BPCL Q1 Results Review - Rights Issue, Capex Cloud The Beat: Nirmal Bang.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bharat Electronics Q1 Results Review - Strong Performance On All Fronts : Yes Securities

Revenue came in above our estimates at Rs 35.1 billion.

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