Our Gladiator stock pick for the month is:
✨Bharat Electronics (#BEL)✨
A Navratna defence public sector undertaking that's empowering India’s armed forces.
CMP: 97
Short Term target: 108
Support: 87
We have shared out techno-fundamental rationale in thread below:
1/n
✨Bharat Electronics (#BEL)✨
A Navratna defence public sector undertaking that's empowering India’s armed forces.
CMP: 97
Short Term target: 108
Support: 87
We have shared out techno-fundamental rationale in thread below:
1/n
2/n
#BEL Technical Outlook:
🔸Taking support at 52 Week EMA, which is expected to act as a good support
🔸Weekly stochastic has a positive crossover and in a rising trajectory
🔸Expect it to resume uptrend in coming weeks and head towards 110 which is 80% retracement of..
#BEL Technical Outlook:
🔸Taking support at 52 Week EMA, which is expected to act as a good support
🔸Weekly stochastic has a positive crossover and in a rising trajectory
🔸Expect it to resume uptrend in coming weeks and head towards 110 which is 80% retracement of..
3/n
.. the entire decline of Sep '22 - Jan'23 (114-87).
About:
BEL is a leading Aerospace & Defense electronics company that makes advance electronic products.
Multi-product, multi-technology range:
🔸Radar
🔸Missile systems
🔸Electronic warfare & avionics
🔸Anti-submarine
.. the entire decline of Sep '22 - Jan'23 (114-87).
About:
BEL is a leading Aerospace & Defense electronics company that makes advance electronic products.
Multi-product, multi-technology range:
🔸Radar
🔸Missile systems
🔸Electronic warfare & avionics
🔸Anti-submarine
4/n
BEL’s focus is on increasing non-defense share to ~20-25% over next 2 to 3 years.
Q3 results:
Company’s Q3FY23 revenue increased 11.8% YoY (4.7% QoQ) to Rs 4,153 crore at an operating margin of 21% (top quartile in peers).
driven by better execution.
Financials:
BEL’s focus is on increasing non-defense share to ~20-25% over next 2 to 3 years.
Q3 results:
Company’s Q3FY23 revenue increased 11.8% YoY (4.7% QoQ) to Rs 4,153 crore at an operating margin of 21% (top quartile in peers).
driven by better execution.
Financials:
5/n
Q3 results:
EBITDA margin stood at 20.7%, contracting by 160 bps YoY mainly on account of higher raw material cost.
PAT increased 2.6% YoY to Rs 599 crore.
Order backlog at Dec 22 was at Rs 50,116 crore (2.9x TTM revenues), giving it good growth visibility.
Q3 results:
EBITDA margin stood at 20.7%, contracting by 160 bps YoY mainly on account of higher raw material cost.
PAT increased 2.6% YoY to Rs 599 crore.
Order backlog at Dec 22 was at Rs 50,116 crore (2.9x TTM revenues), giving it good growth visibility.
6/n
#BEL
Despite order inflow being Rs. 3,736 cr in 9MFY23, management has given its FY23 order inflow guidance of Rs. 20,000 cr, indicating a strong pipeline:
🔸 Expected orders of Rs 3,300 crores from Himshakti program
🔸 Atulya medium-power radar of Rs. 2,000-3,000 crores
#BEL
Despite order inflow being Rs. 3,736 cr in 9MFY23, management has given its FY23 order inflow guidance of Rs. 20,000 cr, indicating a strong pipeline:
🔸 Expected orders of Rs 3,300 crores from Himshakti program
🔸 Atulya medium-power radar of Rs. 2,000-3,000 crores
7/n
#BEL
Orders worth Rs 10,000 crore for radars and SONAR expected from naval shipyards.
Other large contracts of QRSAM (Quick Range Surface to Air Missile) and Akash missile systems is expected to be awarded in FY24
#BEL
Orders worth Rs 10,000 crore for radars and SONAR expected from naval shipyards.
Other large contracts of QRSAM (Quick Range Surface to Air Missile) and Akash missile systems is expected to be awarded in FY24
8/n
#BEL Our view:
BEL’s strategy to diversify into non-defence areas, focus on increasing exports and services share would aid long term growth and help de-risk its business.
We expect revenue, EBITDA & PAT to grow at 18.5%, 20.1% and 18.2% CAGR respectively, in FY22-24E
#BEL Our view:
BEL’s strategy to diversify into non-defence areas, focus on increasing exports and services share would aid long term growth and help de-risk its business.
We expect revenue, EBITDA & PAT to grow at 18.5%, 20.1% and 18.2% CAGR respectively, in FY22-24E
9/n
Overall, expected double digit revenue, order inflow growth, sustained margins and strong order book are expected to ensure a better performance.
Overall, expected double digit revenue, order inflow growth, sustained margins and strong order book are expected to ensure a better performance.
10/n
Recent Updates:
A. Bharat Electronics (#BEL) opened a new software development centre in Visakhapatnam on Feb 24th.
Will offer “Software as a Service” for various applications in the domains of both Defence and non-Defence.
Recent Updates:
A. Bharat Electronics (#BEL) opened a new software development centre in Visakhapatnam on Feb 24th.
Will offer “Software as a Service” for various applications in the domains of both Defence and non-Defence.
11/n
March 1, 2023: BEL to supply RF Modules for Rafale Radar.
BEL signed a Frame Supply Agreement with Thales Reliance Defense Systems (TRDS), for the manufacture and supply of
- TR Modules
- Radar LRUs (Line Replaceable Units) and
- Micro Modules.
March 1, 2023: BEL to supply RF Modules for Rafale Radar.
BEL signed a Frame Supply Agreement with Thales Reliance Defense Systems (TRDS), for the manufacture and supply of
- TR Modules
- Radar LRUs (Line Replaceable Units) and
- Micro Modules.
12/n
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Follow us @ICICI_Direct and hit the bell icon🔔to stay updated on such insights.
Disclaimer: bit.ly/fulldisclaimer
Hope you found this useful.
Follow us @ICICI_Direct and hit the bell icon🔔to stay updated on such insights.
Disclaimer: bit.ly/fulldisclaimer
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