Buy Bharat Electronics; target of Rs 220: Sharekhan

Sharekhan is bullish on Bharat Electronics has recommended buy rating on the stock with a target price of Rs 220 in its research report dated January 31, 2024.

Broker Research

February 07, 2024 / 20:01 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on Bharat Electronics

The company’s consolidated PAT was 14% below the consensus estimate, as a revenue miss of 25% was partially offset by a beat in OPM. Lower-than-expected revenue was primarily because of lower execution and revenue spillover of Rs. 400-500 crore to Q4FY2024. Despite an underwhelming quarter, the company has maintained its FY24 growth guidance of 15% revenue growth and expects strong growth in Q4FY24. Management has upgraded EBITDA margin guidance to 23% (vs 21-23% earlier). Order backlog stands strong at ~Rs. 76,217 crore (up 52% y-o-y). The company has a robust YTD order intake of Rs. 27,647 crores, expecting additional orders worth ~Rs. 50,000 crores over the next 2 years.

Outlook

BEL boasts a promising order inflow pipeline, strong cash balance, and healthy return ratios. We retain Buy with a revised PT of Rs. 220.

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