Buy Bharat Electronics; target of Rs 150: Prabhudas Lilladher
Prabhudas Lilladher’s research report on Bharat Electronics
BEL reported PAT of Rs1.8bn, up 43% YoY, above our and consensus estimates. Revenue growth for the quarter was strong (up 22% YoY), EBITDA was up ~88% at Rs3.1bn, Margins at 14.8% were up by 520bps. Order inflow for the quarter was up 48% at Rs36bn.
Strong cash generation net of capex, zero debt and cash of roughly a fourth of the market cap makes us positive on the stock. We expect stock to deliver earnings CAGR of 14% over FY18-20E. Maintain “BUY”.
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