Bharat Electronics Q2 Results Review - Performance Remains Healthy, Inflows To Ramp Up; 'Buy': Motilal Oswal

Motilal Oswal Report

Bharat Electronics Ltd.’s Q2 FY25 results came ahead of our estimates, driven by better-than-expected margin performance. Revenue growth was led by a strong order book, which stood at Rs 746 billion. Order inflows stood at Rs 74 billion during H1 FY25. We expect defense ordering to start ramping up in the coming quarters. We expect Bharat Electronics to remain a key beneficiary of the same, with key focus areas being from naval, EW systems, artillery systems, platform orders, Kavach, exports, et al.

We expect Bharat Electronics’ revenue to grow at 19% compound annual growth rate over FY24-27, driven by improved market share on account of enhanced wallet share and improved indigenized offerings.

We maintain our estimates and continue to value the company at 35 times two-year forward earnings. Reiterate Buy with a target price of Rs 360.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.