Buy This Large-Cap Navratna Stock For 18% Returns: ICICI Direct

Reputed brokerage firm ICICI Direct in its recent report published on 1 June 2022 has suggested buying Bharat Electronic Ltd stock for an estimated target price of Rs 290. Bharat Electronics Ltd focus to increase the non-defence share to ~20% over two to three years.

Stock Overview: CMP, Target Price, Return, 52 Week Low & High

The Bharat Electronics Ltd's today opened at Rs 246.10, the previous close was 248.20. The current market price (CMP) of the stock is Rs 245.85. Investors can expect potential gains of 18% based on the brokerage's predicted target price of Rs 290 and the CMP. The stocks performed well over the last year. It has touched the 52-week low level at Rs 140.50 on 18 June 2021, while the 52 week high level at 259.50 on 19 April 2022.

Q4FY22 Results

In the report, the brokerage has said, Bharat Electronics reported a better-than-expected performance. Further, according to the brokerage, "Revenue declined 8.4% YoY to Rs 6324.9 crore (I-direct estimate: Rs 6320.5 crore). FY22 revenues were at Rs 15313.7 crore, up 8.9% YoY EBITD. A margin declined 374 bps YoY to 24.8%; better than estimate of 22.4%, mainly due to lower other cost. EBITDA declined 20.4% YoY to Rs 1567.8 crore (I-direct estimate: Rs 1417.9 crore). PAT declined 15.6% YoY to Rs 1141.8 crore; better than estimate of Es 1003 crore, primarily due to better-than-expected margins. Bharat Electronics Ltd's order book was at Rs 57570 crore as of March 2022 end."

Buy for a Target Price of Rs 290/share

Overall, expected double-digit revenue, order inflow growth, sustained margins and strong order book to ensure better performance. "We remain long term positive and retain our BUY rating on the stock. We value Bharat Electronics at Rs 290 i.e. 24x P/E on FY24E EPS," brokerage has said.

Bharat Electronics Ltd.

Incorporated in the year 1954, Bharat Electronic is a Navratana Company having a market cap of Rs 59,891 Crore. Bharat Electronics Ltd is a leading aerospace and defence electronics company. It primarily manufactures advanced electronic products such as Multi-product, multi-technology- diverse product range including radar, missile systems, electronic warfare & avionics, anti-submarine warfare, electro-optics, homeland security, civilian products, etc. Bharat Electronics Ltd's key Products/Revenue Segments include Electronic Components & Equipments, Other Operating Revenue, Sale of services, Rent and Scrap for the year ending 31-Mar-2021.

Disclaimer

The stock has been picked from the brokerage report of ICICI DIrect. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decisions.