Bharat Electronics share price surged over 8% in early trading session on Tuesday, following analysts’ bullish outlook and raised target prices after the company’s strong Q4 results. The shares soared as much as 8.55%, reaching a record high of Rs 283 per share on the NSE.
State-owned Bharat Electronics
Revenue from operations also saw a significant rise, growing 32% to Rs 8,564 crore compared to Rs 6,479 crore in the corresponding quarter of the previous fiscal year.
For the March quarter, BEL recorded a turnover of Rs 8,335.01 crore, up from Rs 6,327.48 crore in the same period last year.
Over the full fiscal year 2023-24, the Navratna Defence PSU achieved a turnover of Rs 19,819.93 crore, marking a 14.35% increase from the Rs 17,333.37 crore turnover in the previous year.
Brokerages on BEL
Motilal Oswal Report on BEL
Motilal Oswal values BEL at 35x P/E on two-year forward earnings, revising the target price to Rs 310 and upgrading the stock to BUY from its previous Neutral rating.
According to a report by Motilal Oswal, Bharat Electronics Ltd (BEL) exceeded expectations in its 4QFY24 results, driven by better-than-expected EBITDA margin, PAT, and strong revenue growth. The up-fronting of order inflows led to an overall beat in the company’s order inflows.
Motilal Oswal expects BEL to be a key beneficiary of increasing defense indigenization, with the share of indigenization in the Indian defense sector continuously rising. BEL’s revenue market
The company is actively working to increase its share of exports and non-defense revenues. Incorporating higher margins, Motilal Oswal has increased its estimates for BEL by 21% for FY25 and 32% for FY26.
The valuation multiple has also been increased to account for BEL’s larger market share, benefits from technology
Nomura on BEL
According to a report by Nomura, Bharat Electronics Ltd (BEL) has been given a ‘Buy’ rating with a target price of Rs 300. The company’s earnings beat expectations, driven by strong margins. BEL’s 4Q EBITDA was ahead of Nomura’s estimate by 14%.
The company holds cash and cash equivalents amounting to Rs 110 billion, compared to Rs 80 billion in FY23. Operating cash flow has significantly increased to Rs 46 billion, up from Rs 11 billion in FY23.
Additionally, BEL’s order backlog stands at Rs 759 billion, which is 3.8 times its trailing twelve months (TTM) sales.
Morgan Stanley on BEL
According to a report by Morgan Stanley, Bharat Electronics Ltd (BEL) has been rated ‘Overweight’ with the target price raised to Rs 300.
The company’s Q4
Morgan Stanley expects some operational efficiencies to remain consistent, prompting them to raise their EBITDA margin estimate to 24-24.5%, up from the earlier 22.5-23%.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.