2021-08-09 Bharat Electronics L.. Motilal Oswal

169.25 205.00 169.25
(10.28%) 9.83 Buy

Gradual ramp-up expected in execution

1QFY22 snapshot: Revenue stood at INR16.3b (flat YoY) and was 32% below our estimates. EBITDA stood at INR629m (down 57% YoY and 85% below our estimates). EBITDA margins came in at 3.8% (v/s 8.8% in 1QFY21). PBT stood at INR152m, aided by higher other income (INR447m v/s our est. of INR250m). Adj. PAT was down 79% YoY to INR112m (v/s our est of INR2.5b). Order inflows stood at ~INR26b, with OB strong at INR545b (OB/rev ~3.9x)....

2021-08-09 Bharat Electronics L.. Prabhudas Lilladhar 169.25 208.00 169.25
(10.28%) 11.44 Buy

Q1FY22 Result Update - Weak performance; outlook remains positive - BUY

Despite weak Q1FY22 performance, management maintained its revenue growth guidance of 15-17% with EBITDAM of ~22% for FY22. Bharat Electronics (BEL) reported a weak quarter as execution impacted due to 1) second wave of Covid, 2) delay in material clearance from government agency and 3) supply chain disruption. Order inflow came in at ~Rs27bn mainly led by order win for indigenous product with healthy margin. Major...

2021-06-30 Bharat Electronics L.. LKP Securities

181.05 212.00 181.05
(3.09%) 13.58 Buy

BHARAT ELECTRONICS - New order inflow and strong execution sharpens visibility

New order inflow and strong execution sharpens visibility Margins surpass street expectations by a long distance in Q4 BEL reported earnings which were strong at 13.5 bn, against a yoy profit of 10.3 bn. This growth was at 30.7% yoy. Revenues expanded by 19% yoy at 69.1 bn. BEL reported a robust EBITDA performance as it grew by 33% yoy on the back of strong execution and improving cost structure....

2021-06-30 Bharat Electronics L.. Geojit BNP Paribas

 

180.65 197.00 180.65
(3.32%) 5.55 Accumulate

BHARAT ELECTRONICS LTD

Bharat Electronics Ltd (BEL) is a Navaratna enterprise having 37% market share in Indian Defence Electronics. BELs core capabilities are in radar & weapons systems, defence communication & electronic warfare. Q4FY21 Revenue & PAT grew by 19% & 31% YoY led by strong execution....

2021-06-24 Bharat Electronics L.. ICICI Securities Limited

171.15 205.00 171.15
(9.06%) 9.83 Buy

Bharat Electronics

Bharat Electronics (BEL) reported revenues at | 6908 crore, growth of 19% YoY (vs. I-direct estimate of | 6485 crore), on the back of normalising supply chain and execution business operations. For FY21, revenue came in at | 14063.8 crore up 8.8%, YoY. Absolute EBITDA for the quarter came in at | 1970.6 crore (vs. our estimate of | 1529.8 crore), up 32.9% YoY. EBITDA margin came in better than estimated at 28.5% (above our estimate of 23.6%) improving ~300 bps YoY, owing to reduced other operating expenses and employee expenses. Consequently, PAT came in at | 1352.4...

2021-06-23 Bharat Electronics L.. Prabhudas Lilladhar

 

175.00 208.00 175.00
(6.66%) 11.44 Buy

Q4FY21 Result Update - Strong quarter; Robust Outlook - Upgrade to BUY

Given strong order backlog and tender pipeline, management guided revenue growth of 15-17% with EBIDTA margin of 20-22%. Bharat Electronic (BEL) reported stellar quarterly performance above our and street estimates, led by strong execution and cost optimization measures. Revenue grew 19% YoY mainly due to strong execution in large value projects such as Akash weapon system and LRSAM. Despite pandemic, OI came in at Rs155mn (up 17%) in FY21. Ordering pipeline remains robust across...

2021-02-16 Bharat Electronics L.. ICICI Securities Limited 133.15 170.00 133.15
(40.18%) Target met Buy

Bharat Electronics

Strong order pipeline, operational performance to aid execution For Q3FY21, BEL bagged decent orders of ~| 4900 crore (| 9881 crore for 9MFY21). BEL continues to have a strong order book and order inflows. Order book as on Q3FY21 was robust at | 54791 crore (vs. | 52148 crore in Q2FY21). BEL is aiming at order inflows of ~ | 15000 crore for FY21E (vs. | 13000 crore in FY20). It expects orders like Avionics package for LCA, Akash weapon system, LRSAM, smart city business, electronic warfare systems, etc. in medium term. Future opportunities include Jammer for LCA....

2021-01-31 Bharat Electronics L.. Motilal Oswal

133.50 140.00 133.50
(39.81%) Target met Buy

Execution disappoints, but should catch up in 4Q

Revenue was broadly flat YoY at INR22.9b and 13% below our expectation. EBITDA was up 24% YoY to INR4.4b and 13% below our expectation as a follow-through of the revenue miss. The EBITDA margin came in at 19.2% (+360bp YoY). Adj. PAT grew 22% YoY to INR2.6b and was 21% below our expectation....

2021-01-30 Bharat Electronics L.. LKP Securities

139.10 158.00 139.10
(34.18%) Target met Buy

BHARAT ELECTRONICS (BEL) - Great visibility to drive robust growth

Superb margin performance in Q3, though revenues were subdued BEL reported earnings which were strong at 2.61 bn, against a yoy profit of 2.15 mn. This growth was at 9.9% yoy. Revenues remained more or less flat yoy at 22.96 bn. The company was done with the supply of ventilators to the Indian Health Department in Q2 itself, due to which Q3...

2021-01-07 Bharat Electronics L.. ICICI Securities Limited

131.75 170.00 131.75
(41.67%) Target met Buy

Bharat Electronics

BEL continues to have a strong order book and order inflows. The order book as on Q2FY21 was robust at | 52148 crore (vs. | 53751 crore in Q1FY21). BEL is aiming at order inflows of ~ | 15000 crore for FY21E (vs. | 13000 crore in FY20). It expects orders like Avionics package for LCA, Akash weapon system, LRSAM, smart city business, electronic warfare systems, etc. Future opportunities include Jammer for LCA. Also, LUH and LCH (helicopters) may allow BEL sensors (MAWS and counter-measure dispensers along with HMDS) and weapons to significantly augment BELs...

2020-12-28 Bharat Electronics L.. Geojit BNP Paribas

126.40 138.00 126.40
(47.67%) Target met Buy

BHARAT ELECTRONICS LTD

New defence acquisition policy 2020, is expected to benefit domestic manufactures given higher indigenous content requirement in various categories, restrictions of imports & stricter timelines for execution. The current order back log is Rs52,700cr (4.3x FY20 sales), which provides strong earning visibility for the next 3 years. Order inflow for H1FY21 was Rs.5,000cr, while order pipeline is expected to improve. Given higher indigenous content in BELs products EBITDA margin is expected to be in the range ~20%. We continue to remain constructive on BEL in long term given its...

2020-11-19 Bharat Electronics L.. Prabhudas Lilladhar

108.35 110.00 108.35
(72.27%) Target met Accumulate

Q2FY21 Result Update - Strong execution, Outlook remains positive Upgrade to Accumulate

Management expects revenue growth of 10-15% in FY21E with lumpy execution from IACCS, LRSAM, Akash and Homeland Security projects. Bharat Electronics (BEL) reported a strong quarter where revenue grew by 16% YoY leading to higher profitability. Execution of large value projects such as LRSAM and IACCS, Ventilator (Rs8-9bn) along with smart city & HLS orders led to higher topline. Order inflows declined 78% YoY at Rs16bn as base quarter had high value order of Akash Missile and some deferment of...

2020-11-08 Bharat Electronics L.. ICICI Securities Limited

 

92.45 110.00 92.45
(101.89%) Target met Buy

Bharat Electronics

Decent order inflows but sustained execution key to growth... For Q1FY21, BEL received bagged decent orders to the tune of ~| 3420 crore, which included ~| 1200 crore order for ventilators, ~| 700 crore order on account of naval forces and smart city projects. BEL continues to have a strong order book and order inflows. Order book as on Q1FY21 was robust at | 53752 crore (vs. | 51970 crore in Q4FY20). However, overall order inflows in FY21E may get impacted by deferral in some projects amid economic challenges. Orders expected in FY21E include avionics package...

2020-11-08 Bharat Electronics L.. Motilal Oswal

93.05 116.00 93.05
(100.59%) Target met Buy

Revenue-led earnings beat

Bharat Electronics (BHE)s 2QFY21 earnings were 23% higher than our est., with revenue beat of 15%. While EBITDA was 25% higher than our est., the EBITDA margin came in lower due to a miss on gross margins. Margins depend on the sales mix between deliverables and hence it tends to be volatile on a quarterly basis. BHEs current order book is strong at INR522b, with an OB/rev ratio of 4x. Order inflows declined 78% YoY to INR15.6b. In 1HFY21, order inflow decline stood lower at 45% YoY. Major orders received in 2Q were for advanced...

2020-11-07 Bharat Electronics L.. LKP Securities 96.70 132.00 96.70
(93.02%) Target met Buy

Bharat Electronics (BEL) - Majestic performance!

BEL reported earnings which were strong at 3.97 bn, against a sequential profit of 541 mn. Revenues grew by 16.3%/90.9% yoy/qoq to 31.9 bn, which were robust as the company well executed projects in this quarter despite several challenges. The company was active in supplying ventilators in the quarter which was one of their main projects. On the profitability front, EBITDA margins came in at 19.6% which were down by just 30 bps yoy, but were still in line with our expectations on prompt execution. Sequentially the margins excelled from 8.8% as the base quarter had an impact of pandemic. The PAT as a result of this came in at 3.97 bn, a growth of 17% yoy, which was slightly better than our estimates on higher other income. In Q2, the company...

2020-08-13 Bharat Electronics L.. LKP Securities 112.30 132.00 112.30
(66.21%) Target met Buy

Bharat Electronics - Gem in the defense pack!

Quarterly results surprised us on positive side BEL reported earnings which were better than our expectations at 541 mn, against our expectations of a loss. Revenues de-grew by 19.7%/71.4% yoy/qoq to 16.4 bn, which were above our expectations as the company executed the ventilators order of 4 bn in the quarter. Exventilators, the revenues dropped by 40% yoy. LRSAM, Smart City business, Intelligence Gathering Systems, Thermal Imaging Cameras and Radar repairs were the other revenue contributors in Q1. Reduction in RM to sales at 49.3% led to gross margin expansion at 50.7%. EBITDA margins came in at 8.8% which were down by 780 bps yoy, but were still better than our expectations of operational loss, on gross margin beat. PAT as a result of this came in at 541 mn, which was better than...

2020-08-03 Bharat Electronics L.. Geojit BNP Paribas

99.20 112.00 99.20
(88.16%) Target met Buy

BHARAT ELECTRONICS LTD

Bharat Electronics Ltd (BEL) is a Navaratna enterprise having 37% market share in Indian Defence Electronics. BELs core capabilities are in radar & weapons systems, defence communication & electronic warfare....

2020-07-29 Bharat Electronics L.. Prabhudas Lilladhar

100.40 99.00 100.40
(85.91%) Target met Hold

Q1FY21 Result Update - Strong order book, healthy performance - HOLD

BEL continues to maintain healthy cash balance of Rs10bn (vs Rs15bn in Mar20); reduced largely towards deferred payment of LRSAM project. Bharat Electronics (BEL) reported a strong quarter higher than our and street estimates. Revenues came in at Rs16.9bn led by strong execution in Ventilators, part supply of Long Range Surface to Air Missile System, Spares & Services, Smart City, Intelligence gathering system, Thermal Imaging Cameras and Radars repairs. Gross margins expanded by 100bps led by...

2020-07-29 Bharat Electronics L.. ICICI Securities Limited

97.30 105.00 97.30
(91.83%) Target met Hold

Bharat Electronics

Decent order inflows but sustained execution key to growth... For Q1FY21, BEL received bagged decent orders to the tune of ~| 3420 crore, which included ~| 1200 crore order for ventilators, ~| 700 crore order on account of naval forces and smart city projects. BEL continues to have a strong order book and order inflows. Order book as on Q1FY21 was robust at | 53752 crore (vs. | 51970 crore in Q4FY20). However, overall order inflows in FY21E may get impacted by deferral in some projects amid economic challenges. Orders expected in FY21E include avionics package...

2020-07-28 Bharat Electronics L.. Motilal Oswal 97.30 108.00 97.30
(91.83%) Target met Buy

Earnings above expectation; order inflows remain strong

Maintain Revenues stood at INR16.7b, down 21% YoY and expect the revenue shortfall to be recouped in the next quarter as the company accomplished balanced ventilator order delivery as well as start ramping up the LRSAM and IACCS orders. Adj. PAT was down 74% YoY to BHEs order book stood at INR538b at end-1QFY21. BHE has secured orders worth INR34.2b in 1QFY21 (up 72% YoY), on the back of large orders acquired for Ventilators (INR12bn), Advanced Torpedo Defense systems and Smart City projects. We have increased our TP from INR108 to INR116 (14x FY22E EPS, below its long-term trading multiple BHE is well positioned to benefit from rising defense expenditure, supported by (a) strong manufacturing base and execution track record, (b) its relationship with defense and government agencies, (c) strategic collaboration with foreign technology partners for new product development, (d) in-house R&D; capabilities (R&D; spend at > 9.0% of revenues), and (e) an increased focus on exports to friendly countries.

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