Buy Bharat Electronics, target price Rs 290: ICICI Direct

ICICI Direct has buy call on Bharat Electronics with a target price of Rs 290. The current market price of Bharat Electronics is Rs 236. Time period given by analyst is one year when Bharat Electronics Ltd. price can reach defined target. .

Bharat Electronics Ltd., incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 58490.41 Crore) operating in Defence sector.

Bharat Electronics Ltd. key Products/Revenue Segments include Electronic Components & Equipments, Sale of services, Other Operating Revenue, Rent and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 6403.75 Crore, up 70.24 % from last quarter Total Income of Rs 3761.56 Crore and down -8.19 % from last year same quarter Total Income of Rs 6974.98 Crore. Company reported net profit after tax of Rs 1146.50 Crore in latest quarter.

Investment Rationale
BEL is well placed to benefit from the government’s strong indigenisation push in the defence sector. The healthy order backlog at 3.7x FY22 revenues provide strong earnings visibility. Moreover, the company has a strong pipeline of orders and expects big ticket size orders in the coming period. The company’s strategy to diversify into non-defence areas, focus on increasing exports and services share would further aid long term growth and help de-risk its business.

Promoter/FII Holdings
Promoters held 51.14 per cent stake in the company as of 31-Mar-2022, while FIIs owned 16.77 per cent, DIIs 26.71 per cent.