Bharat Electronics has corrected from the peak of Rs 100.85 and currently it has shown signs of bottoming out around Rs 86-87 levels. Formation on the daily chart showing positive moves on the upside.
The current market price of Bharat Electronics is Rs 87.05.
Time period given by us is one year when Bharat Electronics price can reach the defined target.
Our View: We upgrade FY20/21ii EPS of Bharat Electronics (BEL) by 8/4% after a 3-4% beat in provisional results for FY19 sales and inflows. BEL in talks with good order book in FY21, we expect healthy execution to drive at least 6% beat to our FY19ii earnings and accordingly revise estimates. FY20 will, however, see earnings consolidating, unless OPMs again spring a positive surprise.
Our interactions over the last month suggest that payments from customers have started improving and should reflect a meaningful development during 1QFY20. We roll-forward our target price to Mar-21ii EPS and revise it to Rs 135.
Global research firm Citi has maintained a buy on aerospace and defense major Bharat Electronics Ltd (BEL) with target of Rs 130, an expected return of 45 percent. Citi believes that BEL can deliver good returns.
Just for info: Navratna Defence PSU Bharat Electronics Ltd (BEL) received export orders valued about USD 33.5 Million from Elbit Systems ElectroOptics Elop Ltd (ELOP), a subsidiary of Elbit Systems Ltd, Israel, on February 21, 2019, at Aero India 2019. It’s healthy signs for BEL for FY20/21 driven by steady growth ordering and profitable government business.