Views on Bharat Electronics Ltd. (BEL) 3QFY2016 Result: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on Bharat Electronics Ltd. (BEL) 3QFY2016 Results:

BEL reports mixed set of numbers

"Bharat Electronics Ltd. (BEL) reported mixed set of numbers. BEL reported top-line of INR1,500 cr, below our estimate of INR 1,713 cr. Surprise from the results has been on the EBITDA margin front. Against our expectation of 16.3%, BEL reported impressive 18.4% margins, mainly led by inventory gains. In-line with EBITDA margin expansion, BEL reported PAT margin expansion to 19.7% and PAT was at INR 296cr, ahead of our estimate of INR 288cr.

During the quarter BEL reported INR 8,000cr IACCS (Integrated Air Command Control Systems) order win. Considering their order backlog of over INR 28,100cr (OB/LTM sales ratio of over 4.0x), margin expansion (as evident from last 2 quarter results), recent correction in stock price, we maintain BUY rating on the stock with price target of INR 1,414."

Shares of BHARAT ELECTRONICS LTD. was last trading in BSE at Rs.1231.1 as compared to the previous close of Rs. 1231.2. The total number of shares traded during the day was 20247 in over 1495 trades.

The stock hit an intraday high of Rs. 1245 and intraday low of 1218. The net turnover during the day was Rs. 24919541.

Source : Equity Bulls

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