Given worries about sustainable operational growth and doubts about the sustainability of a +20% operating margin under the new pricing policy that will affect PBT margin, Bharat Electronics Ltd. (BEL) has been trading at a significant discount to other large cap industrial companies, according to Antique Stock Broking.
“BEL has been able to successfully allay these worries thanks to a strong order book, order pipeline, and consistent delivery of +20% margin. With a target price of $135 per share, we continue to retain our Buy recommendation on the stock, the letter said.
The recent week saw 150 billion in orders, according to Bharat Electronics (BEL). According to international firm Jefferies, the stock has lost more than 15% of its value from its 1-year high and has lagged its comparable Hindustan Aeronautics this year.
Although recent ordering has brought it closer to the FY23E 200 bn estimate, we think this provides a strong entry position. Unexpected orders ought to support this. In our opinion, upside should be driven by defence indigenization, revenue from non-defence activities, and double-digit execution growth,” Jefferies said, retaining a Buy rating on BEL shares with a target price of 125 per share.
The opinions and suggestions listed above are not Currency Veda rather, they represent the opinions of certain analysts or brokerage firms.
