Bharat Electronics Q1 Results Review - Good Performance In A Lean Quarter: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Bharat Electronics Ltd.'s reported Ebitda was higher than our estimate at Rs 9,482 million (versus estimate Rs 8,450 million). Management guidance for FY25:Maintains double-digit growth outlook (15%).Gross margin seen at ~41-43% and Ebitda margin at ~23-25%. BEL anticipates an order inflow of Rs 250 billion, excluding Rs 300 billion from quick reaction surface-to-air missile. The QRSAM orders are expected in FY26, resulting in an order inflow of Rs 450 billion in FY26. Management anticipates a book-to-bill ratio of 2-3x in the subsequent years..We anticipate revenue/Ebitda/profit after tax compound annual growth rate of 16%/18%/15% during FY25E-FY26E. The stock is trading at a one-year forward P/E of 43 times, above the five-year average price/earning of 16 times. We had downgraded both the sector and BEL to sell earlier this month on account of extremely steep valuations relative to sector fundamentals. We maintain ‘Sell’ rating on BEL with a target price of Rs 280, valuing it at 35 times June-26E EPS + 2SD above the long-term average..Click on the attachment to read the full report:.Bharat Electronics Q1 Results: Profit Surges 46.2%, Beats Estimates.DISCLAIMERThis 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.

Bharat Electronics Q1 Results Review - Good Performance In A Lean Quarter: Nirmal Bang

Revenue for Q1 stood at Rs 42,436 million, up 19.1% YoY, mostly led by good order book execution, says the brokerage.

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Bharat Electronics Q1 Results Review - Good Performance In A Lean Quarter: Nirmal Bang

Revenue for Q1 stood at Rs 42,436 million, up 19.1% YoY, mostly led by good order book execution, says the brokerage.

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