Hold Bharat Electronics; target of Rs 194: ICICI Direct

ICICI Direct's research report on Bharat Electronics

The company reported a strong operating income of Rs 1724.8 crore, up 97.9% YoY (our estimate: Rs 1084.8 crore for the quarter). However,  total income grew 77.9% YoY due to 47.8% YoY drop in other income The company  reported EBITDA profit of Rs 163.3 crore vs. loss of Rs 46 .7  crore in Q1FY17. We estimate EBITDA of Rs 55.7 crore for the quarter.  EBITDA margins came in at 9.5% vs. our estimate of 5.1% crore for the quarter.

Outlook

Accordingly, we value the company at 25x P/E on FY19E EPS of Rs 7.8 to arrive at a target price of Rs 194 per share. We have a HOLD recommendation on the stock. For all recommendations report, click here

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