Business »  Topic »  Stock corner: ‘Hold’ Bharat Electronics, an overall miss for company in the quarter

Stock corner: ‘Hold’ Bharat Electronics, an overall miss for company in the quarter


Maintain Hold with an unchanged TP of Rs. 125 as we roll over the valuation to March 2021.

Sedate execution in the defence segment (up ~10% y-o-y versus our forecast of 30%) led to an overall miss for Bharat Electronics (BHE). Key highlights: (i) Defence revenue grew 10% y-o-y, adjusting for Rs. 12.6-bn EVM/VVPAT execution in the base quarter and civil revenue in Q2FY20; (ii) Rs. 71-bn order inflow was aided by the Akash contract; there are no major orders in the pipeline now; (iii) Ebitda margin dipped about 530bps dragged by higher raw material cost; decline would ...


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