Buy Bharat Electronics, target price Rs 405: ICICI Direct

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Buy Bharat Electronics, target price Rs 405:  ICICI Direct


ICICI Direct has buy call on Bharat Electronics with a target price of Rs 405. The current market price of Bharat Electronics Ltd. is Rs 325.8. Time period given by analyst is one year when Bharat Electronics Ltd. price can reach defined target.

Bharat Electronics Ltd., incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 79177.09 Crore) operating in Defence sector.

Bharat Electronics Ltd. key Products/Revenue Segments include Electronic Components & Equipments, Sale of services, Other Operating Revenue, Scrap and Rent for the year ending 31-Mar-2022.

Financials

For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 3222.82 Crore, down -49.67 % from last quarter Total Income of Rs 6403.75 Crore and up 90.25 % from last year same quarter Total Income of Rs 1693.98 Crore. Company reported net profit after tax of Rs 356.13 Crore in latest quarter.

Investment Rationale
With the strong order backlog and healthy pipeline, the brokerage expects revenue, EBITDA to grow at a CAGR of 18.5%, 20.1%, respectively, in FY22-24E aided by sustained margins in range of ~22%. It remains positive on BEL and retains BUY rating on the stock with a target price of Rs 405 (valuing at 30x P/E on FY24E EPS).


Promoter/FII Holdings
Promoters held 51.14 per cent stake in the company as of 30-Jun-2022, while FIIs owned 15.99 per cent, DIIs 27.76 per cent.

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