Citi ups Bharat Electronics target to Rs 1735 on defence boost

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Moneycontrol Bureau

With advising buy rating, Citi says Bharat Electronics is the top India Industrial pick given defence manufacturing in a USD 245 billion opportunity over next decade and the market leader in India defence electronics, where it has significant competitive advantages.

The brokerage house believes the state-owned aerospace and defence company is set to deliver 15 percent EPS CAGR (earnings per share compounded annual growth rate) over FY16-19. Valuation looks reasonable, trading at P/E of 16.7x FY18, it feels.

Hence, Citi increased target price on the stock to Rs 1735 (from Rs 1557) to factor in minor EPS tweaks and roll forward of target P/E to March 2018.

At 10:45 hours IST, the scrip of Bharat Electronics was quoting at Rs 1,268.40, up Rs 6.65, or 0.53 percent on the BSE.Posted by Sunil Shankar Matkar