Geojit recommended is bullish on Bharat Electronics has recommended buy rating on the stock with a target price of Rs 112 in its research report dated August 03, 2020.
Geojit's research report on Bharat Electronics
Q1FY21 Revenue & PAT declined by 21% & 74% YoY on account of disruptions due to lockdown. EBITDA declined by 58% YoY and margin fell by 780bps YoY to 8.8% due to weak execution. Order inflow grew by 72% led by Ventilators, smart city projects and Advance Torpedo defence systems. The current order back log is Rs53,752cr (4.3x FY20 sales) provides strong earning visibility for next 3 years. We continue to remain constructive on BEL in long term given its niche technological & execution capabilities and government focus on indigenisation.
Given strong order book visibility and stable order inflow, we maintain "Buy" rating on stock. We value BEL at 13x on FY22E with a revised target price of Rs112.
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