Hold Bharat Electronics, target of Rs 1786: Indiabulls Sec

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Indiabulls Securities Research has come out with a research report on Bharat Electronics . The research firm has upgraded target price to Rs 1,786 but maintained hold rating to the stock, in its report dated November 16, 2009.

In Q2'10, Bharat Electronics (BEL) reported strong set of numbers. The net sales increased 66.4% yoy to Rs 13 billion on account of surge in sales volumes. The EBITDA margins improved 362 bps yoy to 25.3% primarily due to lower commodity prices. In the near term, we expect the company would benefit from the increased Union Budget allocation to the Defence sector for
FY09-10. In addition, the company is enhancing its product offerings as wellas diversifying into non-defence segment to cushion the competition in the defence sector. We upgrade our target price to Rs 1,786 but maintain our hold rating to the stock", says Indiabulls Securities Research.

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