Bharat Electronics Ltd., incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 42347.99 Crore) operating in Defence sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1693.98 Crore, down -75.71 % from last quarter Total Income of Rs 6974.98 Crore and up .11 % from last year same quarter Total Income of Rs 1692.07 Crore. Company reported net profit after tax of Rs 13.05 Crore in latest quarter.
Investment Rationale
While its 1QFY22 performance has been below expectations, the brokerage believes BHEL has sufficient levers to recover lost sales over 9MFY22 and meet its guidance. Notably, 1Q has historically contributed 10–15% to the topline (over FY15–20). While it cuts FY22E EPS by 5%, it broadly maintains FY23–24E EPS and forecast a revenue/EBITDA/PAT CAGR of 11%/8%/10% over FY21–24E. Its TP stands at INR205/share (20x FY23E EPS).
Promoter/FII Holdings
Promoters held 51.1 per cent stake in the company as of June 30, 2021, while FIIs held 14.1 per cent, DIIs 28.9 per cent and public and others 5.9 per cent.
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