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Entry Price

136.00

Target

170.00

Recommend Date

16-02-2021

Return

25.0 %
BUY

Date : 16-02-2021

Bharat Electronics (BEL) reported revenues at | 2296 crore, growth of 1.1% YoY (vs. I-direct estimate of | 2878 crore), on the back of normalising supply chain and business operations. Absolute EBITDA for the quarter came in at | 440.4 crore (vs. our estimate of | 495.1 crore), up 24.1% YoY. While EBITDA margin came in better than estimated at 19.2% (above our estimate of 17.2%) improving ~360 bps YoY, owing to reduced raw material cost. Consequently, PAT came in at | 261.9 crore, up 21.7%, primarily due to improved margins. However, other income fell 30.3% to | 23 crore YoY