Bharat Electronics Q4 Review: ICICI Securities Maintains 'Buy' On Strong Order Inflows; Hikes Target Price

BEL Systems were there in all the forward areas, providing offensive and defensive applications during the current domestic offensive operations. A lot of the solutions developed by BEL were used by the forces in the field this time..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Bharat Electronics Ltd. has witnessed its best-ever performance, revenue, Ebitda, PAT and margins. With BEL expecting order inflow of ~Rs 570 billion over the next 12–13 months, we remain optimistic on its OI opportunity. Apart from defence, the company is also expanding its product offerings across the non-defence platforms and that is likely to contribute positively. Further, management guides for a 15–17.5% revenue CAGR and a >20% PAT CAGR over the next three–four years. This apart, BEL is investing significantly in its R&D capabilities, as it plans to add 700-1,000 engineers in its R&D team. .We continue to believe that BEL’s order book execution shall remain steady with robust margins over the next two–three years. Taking cognizance of its FY25 performance, we raise our FY26E/FY27E EPS by 6%/7%. Further, we raise the multiple to 45x (earlier 40x) owing to better visibility on order funnel (including emergency procurement) in light of the current geopolitical situation. Our revised target price works out to Rs 420 (earlier Rs 350) based on 45x FY27E EPS. Maintain Buy. Working capital rose in FY25, mainly due to order spill-over to FY26..Key risks Delay in awarding of orders. Margin compression due to higher proportion of bought-out components.Slower execution due to downstream partners unable to ramp-up adequately..Click on the attachment to read the full report:.Bharat Electronics Share Price Continues To Surge, Hits All-Time High.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bharat Electronics Q4 Review: ICICI Securities Maintains 'Buy' On Strong Order Inflows; Hikes Target Price

ICICI Securities raises its multiple to 45x owing to better visibility on order funnel (including emergency procurement) in light of the current geopolitical situation.

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