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.