Buy Bharat Electronics, target price Rs 125: ICICI Securities

ICICI Securities has buy call on Bharat Electronics with a target price of Rs 125. The current market price of Bharat Electronics is Rs 97.15.

Bharat Electronics, incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 71014.50 Crore) operating in Defence sector.

Bharat Electronics key Products/Revenue Segments include Electronic Components & Equipments, Sale of services, Other Operating Revenue, Scrap and Rent for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 4211.76 Crore, up 4.37 % from last quarter Total Income of Rs 4035.38 Crore and up 11.97 % from last year same quarter Total Income of Rs 3761.56 Crore. Company has reported net profit after tax of Rs 603.01 Crore in latest quarter.

The company’s top management includes Mr.Dinesh Kumar Batra, Mr.Gokulan Bangakandy, Mr.Shivnath Yadav, Mr.Prafulla Kumar Choudhury, Dr.N Santhoshkumar, Mr.Mansukhbhai S Khachariya, Dr.Binoy Kumar Das, Dr.P V Parthasarathi, Mr.Anurag Bajpai, Mr.Bhanu Prakash Srivastava, Mr.M V Rajasekhar, Mr.Vinay Kumar Katyal, Mrs.Anandi Ramalingam, Mrs.Shyama Singh. Company has Guru & Jana as its auditors. As on 31-12-2022, the company has a total of 731 Crore shares outstanding.

Investment Rationale
In the last week of FY23, the Ministry of Defence (MoD) has approved a number oforders, benefitting PSUs. Most of these orders are under the Indian-IDMM category, in line with thegovernment’s focus on indigenisation, hence, ICICI Securities expect consequential benefits fordownstream companies in radars, instrumentation and surveillance systems, including Bharat Electronics.

Promoter/FII Holdings
Promoters held 51.14 per cent stake in the company as of 31-Dec-2022, while FIIs owned 17.34 per cent, DIIs 24.96 per cent.