Buy Bharat Electronics; target of Rs 205: ICICI Direct

ICICI Direct is bullish on Bharat Electronics recommended buy rating on the stock with a target price of Rs 205 in its research report dated June 24, 2021.

Broker Research

June 24, 2021 / 11:24 IST

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

26 Aug, 2025 12:21

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ICICI Direct's research report on Bharat Electronics

Bharat Electronics (BEL) reported revenues at Rs 6908 crore, growth of 19% YoY (vs. I-direct estimate of Rs 6485 crore), on the back of normalising supply chain and execution business operations. For FY21, revenue came in at Rs 14063.8 crore up 8.8%, YoY. Absolute EBITDA for the quarter came in at Rs 1970.6 crore (vs. our estimate of Rs 1529.8 crore), up 32.9% YoY. EBITDA margin came in better than estimated at 28.5% (above our estimate of 23.6%) improving ~300 bps YoY, owing to reduced other operating expenses and employee expenses. Consequently, PAT came in at Rs 1352.4 crore, up 30.7% primarily due to higher execution, improved margins. Also, other income was up 102% to Rs 57 crore, YoY.

Outlook

We revise our target price to Rs 205, 19x on FY23E EPS (earlier TP Rs 170) and reiterate BUY.

For all recommendations report, click here