Sharekhan's research report on Bharat Electronics
Q3FY21 was an operationally strong quarter leading to higher net profit y-o-y. Revenues were flat y-o-y although lower than estimates. Management declared interim dividend of Rs. 1.40/- per equity share. Order book remains healthy at Rs. 54,791 crore (4.2x its TTM revenue), which provides sustainable revenue visibility; expect pickup in order intake during FY2022E. BEL is well-placed to benefit from rising defence expenditure supported by a strong manufacturing base, execution track record and continued focus on in-house R&D capabilities.
We retain a Buy rating on Bharat Electronics Limited (BEL) with an unchanged price target of Rs. 152 considering reasonable valuations and strong execution capabilities.