Buy Bharat Electronics, target price Rs 350: JM Financial

JM Financial has buy call on Bharat Electronics with a target price of Rs 350. The current market price of Bharat Electronics is Rs 311.6. 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 74681.57 Crore) operating in Defence sector.

Bharat Electronics Ltd. 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 30-06-2022, the company reported a Consolidated Total Income of Rs 3222.82 Crore, down -49.67 % from last quarter Total Income of Rs 6403.75 Crore and up 90.25 % from last year same quarter Total Income of Rs 1693.98 Crore. Company reported net profit after tax of Rs 356.13 Crore in latest quarter.

Investment Rationale
The brokerage believes improving inflows and prudent working capital management is likely to further strengthen balance sheet. It maintains BUY with revised TP of INR350, based on 23x Sep’24E EPS (50% premium to 10-year median multiple)

Promoter/FII Holdings
Promoters held 51.14 per cent stake in the company as of 30-Jun-2022, while FIIs owned 15.99 per cent, DIIs 27.76 per cent.