Sharekhan's research report on Bharat Electronics
Defence Acquisiton Council (DAC has cleared five capital acquisition proposals worth Rs 21,772 crore to bolster India’s defence capabilities, leading to additional order pipeline for defence companies over 2-3 years. Proposals have been issued for 1) AoN for Fast Attack Crafts (FAC), Fast Interceptor Crafts (FIC) and ALH (M) MR. 2) Overhaul for tanks and BMPs. 3) Overhaul of Su-30MK-I. Order inflow pipeline is promising, cash balance strong and return ratios are healthy. Strong Q2 makes us factor in estimates of 16%/16% revenue / PAT CAGR for FY24-27, respectively.
Outlook
Hence, we retain a Buy with a PT of Rs. 380. At CMP, the stock trades at 42x/37x its FY2025/FY2026 earnings estimates.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
