Bharat Electronics share price up 9%: What to expect from the defence stock
Bharat Electronics share price: The shares of the company rose 9.25% to hit a high of ₹282.80 on BSE and the stock is up 154 per cent in the past one year.
Bharat Electronics share price: The shares of Bharat Electronics Ltd (BEL) rallied over 9 per cent today (May 21) as the PSU's Q4 earnings beat estimates flanked by strong margins. The gross profit margin for BEL has remained strong since the past three quarters averaging at 48.5 per cent. Today, the shares of the company rose 9.25 per cent to hit a high of ₹282.80 on BSE and the stock is up 154 per cent in the past one year.
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Nomura India noted, “Increase in other income by 225 per cent YoY also led to the PAT beat of 17 per cent/ 21 per cent versus Nomura/ consensus estimates."
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It added, "Overall, we remain positive on BEL as we expect the secular growth to sustain, driven by its market dominance and increased project sizes, as it further ascends the value chain as a system integrator.”
The brokerage said that BEL may demonstrate a PAT CAGR of 16 per cent over FY23F-FY26F as it suggested a target price of ₹300 for the stock.
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Motilal Oswal said, “We also increase the valuation multiple to account for a larger market share of BHE, benefits of technology tie-ups, MoUs, and an improving share of exports and non-defense in total revenues. We value BHE at 35 times PE on two-year forward earnings and revise the target price to INR310. We upgrade the stock to BUY from Neutral earlier.”
