Buy Bharat Electronics; target of Rs 225: Edelweiss

Edelweiss is bullish on Bharat Electronics has recommended Buy rating on the stock with a target price of Rs 225 in its research report dated July 31, 2017

August 01, 2017 / 19:07 IST

26 Aug, 2025 12:21

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Edelweiss' research report on Bharat Electronics
Bharat Electronics (BEL) has sprung a strong execution surprise for 2 consecutive quarters led by pick-up in execution in certain large projects. Key highlights: a) robust ~INR401bn order book includes large projects like IACC/LR-SAM, which we believe pose an upside risk to consensus top-line estimates; b) Q1FY18 order intake appears strong at >INR22bn (INR10bn in Q1FY17) with INR15bn from VVPAT (voting machines) alone; and c) BEL seems to be on track to post 20% order book CAGR over FY17-19E to INR580bn (~5x sales) riding strong competitive edge and favourable positioning in high priority / large value projects.

Outlook

Key value driver over the next 2-3 years remains healthy double digit growth in order book, sustainable OPMs and pick up in execution around large systems over FY17-19. We maintain ‘BUY/SO’.

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