Buy Bharat Electronics; target Rs 1422: Firstcall Research
Firstcall Research is bullish on Bharat Electronics (BEL) and has recommended buy rating on the stock with a target price of Rs 1422 in its June 18, 2013 research report.
June 19, 2013 / 12:26 IST
Firstcall Research report on Bharat Electronics (BEL)
"Bharat Electronics’ (BEL) net profit jumps to Rs.5926.98 million against Rs.3338.42 million in the corresponding quarter ending of previous year, an increase of 77.54%. Revenue for the quarter rose 20.93% to Rs.27781.14 million from Rs.22972.38 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.74.09 a share during the quarter, registering 77.54% increase over previous year period. Profit before interest, depreciation and tax is Rs.7656.48 millions as against Rs.4693.46 millions in the corresponding period of the previous year.""Outlook and Conclusion: At the current market price of Rs.1293.00, the stock P/E ratio is at 11.05 x FY14E and 10.32 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.117.01 and Rs.125.31 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 7% and 7% over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 3.60 x for FY14E and 3.17 x for FY15E. Price to Book Value of the stock is expected to be at 1.43 x and 1.25 x respectively for FY14E and FY15E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 1422 for Medium to Long term investment," says Firstcall Research report. 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. 
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