Bharat Electronics - Recouping core; volume recovery on cards - Edelweiss

Bharat Electronics' (BEL) margin posted a spectacular comeback, catapulting 200bps YoY in Q3FY13; though margin surpassed Street estimate, it belied our expectation. While Q3FY13 and 9mFY13 revenue was weak, management believes volume recovery in Q4FY13 will be strong enough to meet its FY13 revenue guidance.

We believe the company is on course to meet its revenue and order intake guidance, and could surprise the Street with a strong margin recovery owing to healthy operating leverage in the coming quarters.

Maintain 'BUY'.

Source : Equity Bulls

Keywords