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Last Updated : Oct 09, 2018 05:03 PM IST | Source: Moneycontrol.com

Buy Bharat Electronics; target of Rs 96: Kotak Securities

Kotak Securities is bullish on Bharat Electronics has recommended buy rating on the stock with a target price of Rs 96 in its research report dated October 08, 2018.

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Kotak Securities' research report on Bharat Electronics


As per the new pricing policy for nomination projects (35% of order book) finalized by the Ministry of Defense (MoD) in May 2018, a 7.5% PBT margin would be allowed v/s the earlier 10-12% margin. Order book continues to be strong. With the LRSAM order of Rs 92 bn, the order book now stands at Rs 500 bn plus, ~ 5x FY18 revenue.


Outlook


However, to factor in the potential downgrade in long term margin profile, we cut target price to Rs 96. In view of the adequate upside from current levels, we reiterate BUY.


For all recommendations report, click here



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First Published on Oct 9, 2018 05:03 pm
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