September 30, 2016 / 14:42 IST
ICICI Direct's research report on Bharat ELectronics
We attended the analyst meet of Bharat Electronics (BEL) to get an insight into the pace of development in the Indian defence space. The management acknowledged that the pace of decision making has improved over the past several months. The same is also visible from BEL’s order inflows of Rs 17,094 crore in FY16, which is a significant 79% increase over last year (order backlog Rs 21,617 crore in FY15). The management sounded positive on the order inflows in FY17E and guided at order inflows of Rs 10000-12000 crore for the year.
BEL also has a strong balance sheet with near nil debt and cash balance of Rs 7332 crore. Accelerated order inflows and BEL’s consistent track record in execution, give us reasonable confidence on the robust prospects of the company. Accordingly, we expect BEL to deliver sales and PAT CAGR of 19.1% and 5%, respectively, in FY16-18E. We value BEL at Rs 1560 i.e. 25x P/E on FY18E EPS of Rs 62.4 and retain BUY recommendation on the company.
For all recommendations, 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
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
