Higher margins drive PAT beat; growth priced in

Company
11 Mar 2024
5 Min read 
  • Bharat Electronics (BEL) reported higher margins and beat PAT estimates in 3QFY24.
  •  Revenue growth was impacted by supply chain issues in Israel, leading to a miss in revenue booking.
  •  Order inflows surpassed guidance due to up-fronting of orders, but stock price already reflects growth expectations.
  •  BEL is a key beneficiary of increasing defense indigenization, but large orders may have elongated execution periods.
  •  Neutral rating maintained with a revised target price of INR190.
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