Moneycontrol
Last Updated : Apr 12, 2018 01:21 PM IST | Source: Moneycontrol.com

Buy Bajaj Electricals; target of Rs 720: ICICI Direct

ICICI Direct is bullish on Bajaj Electricals has recommended buy rating on the stock with a target price of Rs 720 in its research report dated April 12, 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Bajaj Electricals


Bajaj Electricals’ (BEL) engineering, procurement & construction (EPC) division has seen a revival in performance post FY15 supported by new high margin orders. Also, BEL has bagged orders worth RS 2389 crore from Purvanchal Vidyut Vitaran Nigam, UP under the Saubhagya Yojana (government’s flagship rural electrification programme).

Outlook

We believe BEL will record revenue, earning CAGR of ~19%, ~34%, respectively, in FY18E-20E supported by an increase in EBITDA margin. Under our SOTP based valuation, we value BEL’s CD segment MCap at 2x FY20E sales (~30% discount to peers) and E&P segment at 7x FY20E EV/EBITDA. We maintain our BUY rating with a revised target price of RS 720/share.

For all recommendations report, 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.

First Published on Apr 12, 2018 01:21 pm
Loading...
Sections
Follow us on
Available On