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Entry Price

97.00

Target

105.00

Recommend Date

28-07-2020

Return

8.25 %
BUY

Date : 28-07-2020

Bharat Electronics (BEL) reported revenues at | 1671 crore, a decline of 20.5% YoY, below our estimate of | 1740 crore on the back of supply chain disruption affecting execution. Absolute EBITDA for the quarter came in at | 146.7 crore (vs. our estimate of | 208.6 crore), down 57.9% YoY. While EBITDA margins declined ~780 bps YoY to 8.8% (below our estimate of 12%) owing to higher-than-expected other expenses & employee expenses. Consequently, PAT fell 73.6% YoY to | 54.1 crore, impacted by slower execution, higher other expenses and lower other income, which declined 27.7% to | 18.4 crore YoY.