Bharat Electronics
BSE SENSEX
26,654
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR m)
Free float (%)
S&P CNX
8,157
BHE IN
240.0
283.9 / 4.2
1,417 / 984
-3/-9/11
475
25.0
28 May 2016
4QFY16 Results Update | Sector: Capital Goods
CMP: INR1,183 TP: INR1,450 (+23%)
Buy
Financials & Valuation (INR b)
Y/E Mar
2016 2017E
Net Sales
73.0
81.9
EBITDA
14.6
14.9
PAT
13.6
14.8
EPS (INR)
56.9
61.8
Gr. (%)
17.0
8.6
BV/Sh (INR)
364.2 426.7
RoE (%)
15.6
14.5
RoCE (%)
16.5
15.6
P/E (x)
20.8
19.1
P/BV (x)
3.2
2.8
Estimate change
TP change
Rating change
Operational performance in line; Working capital cycle improvement impressive
4QFY16 operational performance broadly in line with estimates:
BHE
reported revenue of INR32.1b (up 9.8% YoY) v/s estimate of INR34.3b and
operating profit of INR9.9b (up 26% YoY) v/s estimated profit of INR9.1b. Gross
margin expansion of 481bp YoY improved margins 167bp YoY to 31%.
4QFY16 revenue at INR32.1b (up 5.8% YoY) was below our estimate of
INR34.1b. Execution deferments on account of delay from vendors in supply of
input equipment like Tatra truck from BEML in 3QFY16 has led to miss in the
2018E
topline for the company. For FY16, BHE’s revenue was supported by
94.1
contribution from segments like Akash missile system, 3D tactical control
17.2
system, Fire control systems, Low level light weight radar, integrated Sonar
16.6
69.0
suit, L Band surveillance radar for export and passive night vision devices.
11.6
Gross margin expansion drives operating profit growth of 26%:
Despite
479.5
revenue growth of mere 9.8% YoY, 4QFY16 operating profit increased 26% YoY
14.4
to INR9.9b—led by strong gross margin expansion of 481bp YoY to 53.4%.
15.2
Gross margin expansion was primarily on account better product mix and forex
17.1
2.5
variation reimbursement of INR1.5b. Raw material cost declined 481bp YoY to
47%, and other expense increased 38.5% YoY to INR3.6b led by increase in
provision done by the company. Reported net profit at INR8.0b was in line
with our estimate (INR7.9b), Tax rate was higher during the quarter (26.1% vs
18.5% in 4QFY15) primarily on account of low in-house R&D as company has
resorted to collaborative R&D.
Maintain Buy:
We maintain
Buy
with a price target of INR1,450/share—21x
FY18E (near its peak historical valuation of 22x), to factor the improved pace of
decision making in defense.
Ankur Sharma
(Ankur.VSharma@MotilalOswal.com); +91 22 3982 5449
Amit Shah
(Amit.Shah@MotilalOswal.com); +91 22 3029 5126
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Bharat Electronics
4QFY16 operational performance broadly in line with estimate
BHE reported revenue of INR32.1b (up 9.8% YoY) v/s estimate of INR34.3b and
operating profit of INR9.9b (up 26% YoY) v/s estimated profit of INR9.1b. Gross
margin expansion of 481bp YoY improved margins 167bp YoY to 31%.
4QFY16 revenue at INR32.1b (up 5.8% YoY) was below our estimate of INR34.1b.
Execution deferments on account of delay from vendors in supply of input
equipment like Tatra truck from BEML in 3QFY16 has led to miss in the topline
for the company. For FY16, BHE’s revenue was supported by contribution from
segments like Akash missile system, 3D tactical control system, Fire control
systems, Low level light weight radar, integrated Sonar suit, L Band surveillance
radar for export and passive night vision devices.
Exports has remained a focus area for BHE and it has set up dedicated business
unit and marketing group to become key supply chain partners of global players
like Boeing, Pilatus, GE, Siemens, Philips etc. Exports for FY16 stood at $85m
(~8.0% of the total revenue), highest in the history of the company. Export order
book stands at $120m (down 40% YoY).
Despite revenue growth of mere 9.8% YoY, 4QFY16 operating profit increased
26% YoY to INR9.9b—led by strong gross margin expansion of 481bp YoY to
53.4%. Gross margin expansion was primarily on account better product mix and
forex variation reimbursement of INR1.5b. Raw material cost declined 481bp
YoY to 47%, and other expense increased 38.5% YoY to INR3.6b led by increase
in provision done by the company. Reported net profit at INR8.0b was in line
with our estimate (INR7.9b), Tax rate was higher during the quarter (26.1% vs
18.5% in 4QFY15) primarily on account of low in-house R&D as company has
resorted to collaborative R&D.
Reported net profit at INR8.0b was in line our estimate (INR7.9b), led by higher-
than-estimated tax rate (28.4% vs estimate of 18%). Higher tax rate was
primarily on account of low in-house R&D as company has resorted to
collaborative R&D.
Exhibit 1: Revenue de-growth on account of weak execution
of orders
Revenue (INR m)
Exhibit 2: Margin improvement driven by product mix
change driven robust gross margin improvement
EBIDTA Margins (%)
1.2
(0.8)
(15.2)
20.9
12.7
(1.8)
23.9 33.9
12.7
12.7
Growth (% YoY)
13.4
8.2
(6.5)
9.8
21
(5.7)
9
14
(13) (1)
11
(6) 0.2 15
25
9
(4)
17
27
31
(18.0)
(0.5) 12
19
Source: MOSL, Company
Source: MOSL, Company
28 May 2016
2
 Motilal Oswal Financial Services
Bharat Electronics
Exhibit 3: Key orders executed during over last three years
FY14
Akash Missile system (Army and Air Force)
Passive night vision devices
Central Acquisition Radar
National Population Register
Electronic support measure system for small ships
Missile warning system
Low level light weight Radar (Bharani)
Low intensity conflict EW system
NC3I Network
Fire Control System
Hull Mounted Sonar
Electronic Voting Machine
Shipborne Electronic Warfare System
Low Level Transportable Radar
Coastal surveillance systems
Electronic Voting Machines
FY15
Missile Systems
Night Vision Devices
Tactical Control radar
Missile warning system
Gun Tank upgrade
Laser range finder
Hull mounted Sonar
Ship borne EW System
FY16
Akash Missile systems (Air force and Army)
3D tactical control radar
Fire Control System
Low Level Light weight radar (Aslesha)
Integrated Sonar suite
L Band Surveillance radar for export
Passive night vision devices
Source: Company, MOSL
Order book stands healthy at INR320b, potential pipe line looks healthy
BHE’s order book as on 4QFY16 end stands healthy at INR320b, BTB at 4.5x.
order finalization of integrated air command and control system (INR79b),
weapon locating radar (INR18b) has led to strong order inflow of INR171b in
FY16. BHE’s addressable defence electronic market seems to be picking up.
Key orders like Akash missile system weapon locating radar, tactical
communication system, mobile cellular communication system, electronic
warfare systems, advanced composite communication system and commander
TI sights are likely to be finalized during FY17.
Exhibit 4: Key orders acquired during last 3 years
FY14
National Population Register
Radar and Sonar for Myanmar (USD70m order)
Mobile Cellular Communication System
HUMSA New Generation
Electronic support measure system for small ships
Akash Missile system (6 Sqdn)
AMC for Surveillance Radar Element
FY15
Gun upgrades
Ship borne EW System
Mobile Communication terminal
Hull mounted Sonar
Advanced Composite terminal
Combat Management System
Communication system
FY16
Integrated Air command control system
Weapon locating radar(Rs18b)
Handheld thermal imager with laser range
Ground based ELINT
Integrated communication system
USHUS Sonar
Electronics Fuzes
Source: Company, MOSL
Working Capital Cycle improves significantly
BHE has been able to significantly improve the working capital cycle during FY16.
Net working cycle for BHE stands at 34 days as on March 2016 as compared to
81days in FY15. BHE has been able to reduce the working capital cycle led by
reduction in inventory levels (169 days as compared to 183 days in FY15)and also on
account of increase in other current liabilities led by increase in advance received
from customers for the orders finalized in FY16 (INR171b as compared to INR51b in
FY15).
28 May 2016
3
 Motilal Oswal Financial Services
Bharat Electronics
Exhibit 5: BHE’s order expectation to be finalized during FY16
FY15
FY16
Missile warning system
Weapon Locating Radar
Electronic Warfare system
Hand held thermal imager
Weapon locating radar
Mobile Electronic intelligence system
Passive night vision devices
Integrated air command control system
Hand held thermal Imager with Laser range
Electronic voting machines
Mobile cellular communication system
Electronic warning system
Weapon locating radar
Passive night vision devices
Mobile cellular communication system
Weapon locating radar
Hand held thermal Imager
Shipborne electronic warfare system
Gun upgrade program
FY17
Akash Missile system
Tactical communication system
Mobile cellular communication system
Electronic warfare systems
Advanced composite communication
Commander TI sights
Source: Company, MOSL
Exhibit 6: Order book stands stable at INR320b providing a
revenue visibility of 4.5x its FY16 revenue
Order Backlog (INR m)
Exhibit 7: Strong order inflow for FY16 led by finalization of
key orders
Order inflow (INR m)
127,760
17,170 7,600 8,270 7,630 27,800 5,410 19,800
28,244
Source: MOSL, Company
Source: MOSL, Company
BHE enters into strategic alliances for emerging business through co-
development, co-production and production ToT
BHE has entered into strategic alliance with defence laboratories, ordinance factory
board and other global OEMs to develop products like Surface to air sytems, air
defence radars, Battlefield management system, sonar systems, next generation
night vision devices, gun upgrades/ new gun programmes, inertial navigation
systems, medium altitude long endurance unmanned aerial vehicles (UAVs) and
maintenance of aerostat surveillance and communication systems.
BHE has identified new emerging business areas like next generation electronic
warfare suites, air defence systems, tactical communication systems and battlefield
management systems
Plans to significantly ramp up the non defence revenue share
BHE plans to significantly ramp up the non defence revenue by entering into new
business areas like critical infrastructure protection, air traffic management radars,
intelligent traffic management systems, Solar power plants and smart city elements.
Currently non defence areas contribute 17% to the overall revenue of the company.
28 May 2016
4
 Motilal Oswal Financial Services
Bharat Electronics
Capex plans of INR5b to set up Greenfield weapon systems facility
BHE plans to set up INR5b Greenfield weapon systems facility in Andhra Pradesh
which will focus on the design, development and production of weapon systems like
fire control, missile systems and other weapon upgrade systems. BHE expects the
facility to be ready over the next two years.
R&D expenditure: target to increase to 10% of revenues
To improve indigenization, adapt upcoming technologies, and maintain its
leadership position in the fast evolving Defense Electronics market, BHE has laid
down R&D plans for FY15-18 (FY15 spend at 8.20% of net sales) and has filed for
nine patent applications during FY15.
Valuation and rating
BHE is well positioned to benefit from the rising defense expenditure supported
by a) strong manufacturing base (Capacity utilization of ~60%) and execution
track record, b) relationship with defense and government agencies, c) strategic
collaboration with foreign technology partners for new products development
d) in-house R&D capabilities (R&D spend at 8.2% of revenues) and e) Increased
focus on exports to friendly countries.
We expect BEL to report EPS of INR62/sh in FY17 (+8.6% YoY), INR69/sh in FY87
(+11.6% YoY). Maintain Buy, with a Price Target of INR1,450/share (21x FY18E)
which is near to its peak historical valuation of 22x to factor the improved pace
of decision-making in defense and higher FII limit.
BHE’s export revenue has increased meaningfully from INR824m in FY09 to
INR5.7b in FY16. The management had set target to increase its export sales to
total sales ratio from the 5.4% in FY15 to 7% by FY19, which the company has
achieved in FY16 itself.
Exhibit 9: BHE P/B (x)
15 Yrs Avg(x)
10 Yrs Avg(x)
Exhibit 8: BHE PER Band (x)
28
24
20
16
12
8
4
0
11.8
13.9
14.1
17.6
P/E (x)
5 Yrs Avg(x)
5.0
4.0
3.0
2.0
1.0
0.0
P/B (x)
5 Yrs Avg(x)
15 Yrs Avg(x)
10 Yrs Avg(x)
2.4
2.3
2.0
2.5
Source: MOSL, Company
Source: MOSL, Company
28 May 2016
5
 Motilal Oswal Financial Services
Bharat Electronics
Exhibit 10: BEL: New Products Developed / Introduced
FY11
Akash Weapon System
New Generation Humsa Sonar
Mobile Communication Terminal
Combat Management Systems for Ships
Coastal Surveillance System
Tablet PC
Integrated anti submarine warfare complex
Advanced torpedo defence system
Digital radio trunking system
Upgraded indigenous forward observer simulator
Electro optic fire control systems
Integrated radio line modem
Remotely operated vehicle
Thermal imaging camera for fly catcher radar
National Command Control Communication and Intelligence Network (NC3I)
Mobile Cellular Communication System
Passive Night Vision Devices with XD4 technology
ESM system for small ship
Point to Multi Point Radio and mast for LORROS
3D Tactical Control Radar
Low Level Light Weight Surveillance Radar (Bharani)
Missile Apprach Warning System
Printing attachment to EVM to facilitate comparison of votes in event of disputes
EVM with new specifications incl digital certification and tamper proof mechanism
Hull Mounted Sonar
Schilka air defence weapon system for army
Software defined radio for Navy
Communication Network (Link II MOD III for Navy
Export version of unit level switch board (ULSB) MK III
Tactical satellite terminal for Akash Army
Advanced composite communication system (Bharati) for Navy
Ship data network (SDN) for P16A ship
Simulator for Akash Misslie System for Army (Vehicle/Classroom Versions)
Secured Phone (CDMA)
Source: MOSL, Company
FY12
FY13
FY14
FY15
28 May 2016
6
 Motilal Oswal Financial Services
Bharat Electronics
Operating metrics
Exhibit 11: Key operating metrics
INR M
Order book
Y-o-Y growth
Order inflow
Y-o-Y growth
Execution
Y-o-Y growth
Book to bill ratio (x)
Revenues
Defence
Non Defence
Revenues
Indigeniously developed
In association with DRDO, etc
Total Indigenous
ToT from Foreign OEM's
Revenues
Domestic
Exports
Exports, % of Total
Cost structure (% of Revenues)
Raw material cost
Employee Cost
Other Expenses
Provisions/write off
R&D Expenses (INR M)
R&D Expenses % to Sales
Net cash/( Debt) (INR M)
Core NWC (Days)
Customer Advances
Reported NWC (Days)
FY10
113,500
9.3%
61,444
14.1%
51,804
13.0%
2.2
51,804
44,330
8,798
FY11
236,000
107.9%
177,217
188.4%
54,717
5.6%
4.3
54,717
44,696
11,174
FY12
257,480
9.1%
77,897
-56.0%
56,500
3.3%
4.6
56,500
42,104
15,573
FY13
249,490
-3.1%
52,425
-32.7%
59,905
6.0%
4.2
59,905
51,882
9,156
FY14
234,520
-6.0%
42,300
-19.3%
61,223
2.2%
3.8
61,223
52,087
10,668
FY15
216,170
-7.8%
51,300
21.3%
66,755
9.0%
3.2
66,755
56,075
10,681
FY16
273,416
26.5%
130,000
153.4%
72,753
9.0%
3.8
72,753
60,385
12,368
FY17E
325,680
19.1%
136,500
5.0%
84,236
15.8%
3.9
84,236
69,074
15,162
FY18E
369,419
13.4%
143,325
5.0%
99,586
18.2%
3.7
99,586
80,665
18,921
57.0%
18.0%
75.0%
25.0%
57.0%
21.0%
78.0%
22.0%
54.0%
27.0%
81.0%
19.0%
NA
NA
78.0%
22.0%
41.0%
44.0%
85.0%
15.0%
38.0%
42.0%
80.0%
20.0%
51,131
1,067
2.1%
53,680
1,617
3.0%
55,157
1,879
3.3%
58,340
1,782
3.0%
59,232
2,510
4.1%
63,111
3,645
5.5%
68,016
4,738
6.5%
78,077
6,159
7.3%
91,579
8,007
8.0%
56.4
19.0
4.8
2.0
3159
5.9
35,777
283
241
43
56.3
18.6
5.0
2.4
3882
6.9
65,192
311
421
-110
62.1
18.7
5.7
2.9
4682
8.1
67,725
365
454
-89
62.4
18.2
6.0
2.9
5099
8.4
53,025
396
353
43
57.9
16.4
6.3
5.4
4670
7.4
45,644
418
307
111
55.2
18.5
6.0
3.6
55.5
17.7
7.0
1.6
55.5
16.7
7.2
1.8
56.0
16.4
7.2
1.7
58,815
346
265
81
51,686
388
225
163
58,160
382
210
172
66,314
379
210
169
28 May 2016
7
 Motilal Oswal Financial Services
Bharat Electronics
Financials and Valuation
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
2011
55,870
5.2
9,895
17.7
1,220
8,675
4
2,740
201
11,611
2,997
25.8
0
8,615
8,414
11.8
2011
800
49,226
50,026
1
-1,806
48,220
17,890
13,053
4,837
577
120
124,277
24,603
28,973
65,194
5,507
81,589
75,853
5,736
42,687
48,221
2012
57,676
3.2
6,146
10.7
1,208
4,938
6
5,855
-39
10,748
2,450
22.8
0
8,299
8,337
-0.9
2012
800
55,570
56,370
0
-2,282
54,088
19,016
13,914
5,102
1,136
120
139,941
27,918
26,869
67,725
17,429
92,210
86,323
5,887
47,731
54,088
2013
61,038
5.8
6,425
10.5
1,307
5,118
8
6,100
-64
11,146
2,248
20.2
0
8,898
8,962
7.5
2013
800
62,429
63,229
0
-2,716
60,513
20,732
14,978
5,755
1,614
120
134,257
32,711
33,347
53,025
15,174
81,233
74,071
7,162
53,024
60,513
2014
62,755
2.8
8,911
14.2
1,421
7,490
34
4,285
6
11,747
2,431
20.7
0
9,316
9,310
3.9
2014
800
69,498
70,298
0
-2,995
67,304
22,267
15,757
6,509
1,969
120
133,680
33,701
41,508
45,644
12,826
74,974
68,979
5,995
58,705
67,303
2015
68,427
9.0
11,433
16.7
1,540
9,894
14
4,780
8
14,667
2,994
20.4
0
11,672
11,665
25.3
2015
800
78,140
78,940
0
-3,378
75,562
24,405
17,297
7,108
1,398
191
139,319
34,269
38,180
58,815
8,055
73,056
65,289
7,767
66,263
74,960
2016
72,952
6.6
14,614
20.0
1,689
12,925
45
5,322
0
18,202
4,553
25.0
0
13,649
13,649
17.0
2016
2,400
85,001
87,401
0
-3,000
84,401
26,467
18,986
7,481
4,297
120
165,325
33,701
41,508
77,289
12,826
92,822
81,204
11,618
72,503
84,401
2017E
81,891
12.3
14,874
18.2
2,111
12,764
0
6,750
0
19,514
4,686
24.0
0
14,828
14,828
8.6
2017E
2,400
100,001
102,401
0
-3,000
99,401
29,467
21,097
8,370
2,000
120
164,520
39,263
44,872
59,296
21,090
75,609
66,634
8,974
88,911
99,401
(INR Million)
2018E
94,054
14.9
17,200
18.3
2,416
14,784
0
7,000
0
21,784
5,231
24.0
0
16,553
16,553
11.6
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
E: MOSL Estimates
(INR Million)
2018E
2,400
112,687
115,087
0
-3,000
112,087
32,467
23,513
8,954
2,000
120
188,625
45,094
51,536
67,772
24,222
87,612
77,305
10,307
101,013
112,087
28 May 2016
8
 Motilal Oswal Financial Services
Bharat Electronics
Financials and valuation
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios (%)
Fixed Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Net Debt/Equity (x)
2011
35.1
41.0
208.4
7.2
20.1
2012
34.7
39.6
234.9
6.9
20.1
2013
37.3
42.5
263.5
7.4
20.0
2014
38.8
44.7
292.9
7.8
20.0
2015
48.6
55.0
328.9
9.7
20.0
15.8
41.9
2.3
1.9
11.0
0.4
16.8
18.1
0.0
3.1
189
161
-1.3
2011
9,895
2,740
23,285
-2,997
201
33,124
-1,441
31,682
0
0
-1,441
-273
-6
-4
-2,010
-2,294
29,389
35,784
65,173
14.8
15.7
0.0
3.0
170
177
-1.2
2012
6,146
5,854
-2,534
-2,450
-39
6,978
-2,010
4,968
0
0
-2,010
-496
-1
-6
-1,934
-2,437
2,531
65,194
67,725
14.2
15.0
0.0
2.9
199
196
-0.8
2013
6,425
6,099
-19,994
-2,248
-64
-9,781
-2,439
-12,220
0
0
-2,439
-389
0
-8
-2,083
-2,481
-14,700
67,725
53,025
13.2
14.0
0.0
2.7
241
196
-0.6
2014
8,911
4,284
-13,062
-2,431
6
-2,292
-2,530
-4,822
0
0
-2,530
-344
0
-34
-2,181
-2,559
-7,381
53,025
45,644
14.8
15.6
0.0
2.8
204
183
-0.7
2015
11,433
4,779
5,614
-2,994
8
18,839
-1,567
17,272
-71
0
-1,638
-684
0
-14
-2,728
-3,427
13,774
45,644
59,418
2016
56.9
63.9
364.2
11.4
20.0
20.8
18.5
3.2
2.9
14.1
1.0
15.6
16.5
0.0
2.7
208
169
-0.9
2016
14,614
5,322
12,234
-4,553
0
27,617
-4,961
22,655
71
0
-4,891
-1,622
0
-45
-3,188
-4,855
17,871
58,815
76,686
2017E
61.8
70.6
426.7
12.4
20.0
19.1
16.7
2.8
2.8
15.1
1.0
14.5
15.6
0.0
2.7
200
175
-0.6
2017E
14,874
6,750
-34,401
-4,686
0
-17,462
-703
-18,165
0
0
-703
3,636
0
0
-3,464
172
-17,993
77,289
59,296
2018E
69.0
79.0
479.5
13.8
20.0
17.1
14.9
2.5
2.3
12.5
1.2
14.4
15.2
0.0
2.8
200
175
-0.6
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
(INR Million)
2018E
17,200
7,000
-3,626
-5,231
0
15,343
-3,000
12,343
0
0
-3,000
0
0
0
-3,867
-3,867
8,476
59,296
67,772
28 May 2016
9
 Motilal Oswal Financial Services
Bharat Electronics
Corporate profile
Company description
Bharat Electronics Limited (BHE) was established at
Bangalore, India, by the Government of India under
the Ministry of Defence in 1954 to meet the
specialized electronic needs of the Indian defence
services. Over the years, it has grown into a multi-
product, multi-technology, multi-unit company
servicing the needs of customers in diverse fields in
India and abroad.
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Mar-16
75.0
14.7
4.0
6.3
Dec-15
75.0
14.7
4.1
6.2
Mar-15
75.0
15.4
3.4
6.2
Exhibit 3: Top holders
Holder Name
Life Insurance Corporation Of India
Reliance Capital Trustee Co. Ltd A/C
Relianceequity Opportunities Fund
% Holding
5.3
1.0
Note: FII Includes depository receipts
Source: Capitaline
Source: Capitaline
Exhibit 4: Top management
Name
Sunil Kumar Sharma
P R Acharya
M L Shanmukh
P C Jain
S Sreenivas
Designation
Chairman & Managing Director
Director (Finance)
Director (Human Resources)
Director (Marketing)
Company Secretary
Exhibit 5: Directors
Name
Sunil Kumar Sharma
Amol Newaskar
Manmohan Handa
P R Acharya
M L Shanmukh
P C Jain
Name
Ajit T Kalghatgi
S M Acharya*
Vinod Kumar Mehta*
Vikram Srivastava*
C A Krishnan
Kusum Singh
*Independent
Source: Capitaline
Exhibit 6: Auditors
Name
Badari Madhusudhan& Srinivasan
Thirupal Gorige
P S V & Associates
Ved & Co
Rao & Narayan
Malani Somani Chandak &
Associates
Type
Statutory
Secretarial Audit
Cost Auditor
Branch
Branch
Branch
Source: Capitaline
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
61.8
69.0
Consensus
forecast
60.4
65.7
Variation (%)
2.3
5.0
Source: Bloomberg
28 May 2016
10
 Motilal Oswal Financial Services
Bharat Electronics
NOTES
28 May 2016
11
 Motilal Oswal Financial Services
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BHARAT ELECTRONICS
No
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