Summary Apollo Computing Laboratories (P) Ltd - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Apollo Computing Laboratories (P) Ltd (ACL) develops and delivers electronic systems in the domain of embedded computing. The company also develops electronic systems focusing on d...
The general evaluation of BHARAT ELECTRONICS (IN), a company active in the Aerospace & Defense industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date January 4, 2022, the closing price was INR 216....
BHARAT ELECTRONICS: Gradual ramp-up expected in execution (BHE IN, Mkt Cap USD5.6b, CMP INR171, TP INR205, 20% Upside, Buy) Maintains FY22 guidance despite miss in 1QFY22 Bharat Electronics (BHE)'s 1QFY22 revenue came in 32% below our estimate, with the miss attributed to lower execution on account of the COVID disruption. With lower execution and elevated commodity costs, the EBITDA margin stood at 3.8% (v/s 8.8% YoY), largely attributable to the lower absorption of fixed costs, such as...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
(BHE IN, Mkt Cap USD5.5b, CMP INR168, TP INR195, 16% Upside, Buy) BHE's 4QFY21 earnings were 39% above our estimate, with the surprise entirely led by higher than expected EBITDA margin (28.5% v/s our estimate of 21.3%). The EBITDA margin expansion was largely attributable to lower employee costs (-17% YoY), other expenses (-10% YoY) and higher domestic outsourcing by BHE. Margin depends on the sales mix between deliverables and hence tends to be volatile on a quarterly basis. BHE’s curre...
Bharat Electronics: Higher material content dents margins; core execution strong (BHE IN, Mkt Cap USD3.1b, CMP INR91, TP INR115, 27% Upside, Buy) Subdued operating performance; order book provides confidence Bharat Electronics' (BHE) 3QFY20 earnings were impacted by the weak operating performance. While revenue was in line, the major disappointment was on the EBITDA margin, which came in at 15.6% versus our estimate of 20.3%. Thus, net profit was 30% below our estimate. Adjusted for EVM...
BHARAT ELECTRONICS: Top line-led earnings miss; operating performance disappoints (BHE IN, Mkt Cap USD4.1b, CMP INR119, TP INR138, 16% Upside, Buy) Operational results below expectations: BHE's revenue declined 19% YoY to INR27.4b (19% miss) in 2QFY20. Note that the year-ago period revenue included INR12b contribution from EVM and VVPAT. Adjusting for the same, revenue was up 26% YoY. 2QFY20 revenue was supported by execution of LRSAM, intelligence gathering system, thermal imager sights, up...
BHARAT ELECTRONICS: Confident of bucking margin pressure; Akash missile system order improves revenue visibility further (BHE IN, Mkt Cap USD3.7b, CMP INR108, TP INR127, 18% Upside, Buy) We attended Bharat Electronics’ (BHE) analyst meet in Bangalore. Key takeaways: Confident of delivering 12-15% revenue growth over next few years: Management reiterated its guidance of revenue growth of 12-15% for FY20 and maintaining this run-rate over the next 4-5 years. Adjusted for EVM/VVPAT revenue...
BHARAT ELECTRONICS: Margin-led operational outperformance; Earnings visibility healthy with reasonable valuations (BHE IN, Mkt Cap USD3.5b, CMP INR98, TP INR130, 32% Upside, Buy) Operational results above estimates: 1QFY20 revenue remained flat YoY at INR21.0b (5% below our est. of INR22.2b). (It is important to note that 1QFY19 revenue included INR4.5b contribution from EVMs, which drove full-year FY19 revenues) Thus, excluding the EVM revenue contribution, core business revenue increase...
Bharat Electronics: Beat on all fronts; Revenue visibility healthy with reasonable valuations (BHE IN, Mkt Cap USD3.9b, CMP INR112, TP INR130, 16% Upside, Buy) Operational results above estimates: 4QFY19 revenue increased 7.7% YoY to INR38.8b (v/s our est. of INR38.9b), primarily driven by execution of EVM/VVPAT orders, IACCS, weapon locating radars and land-based EW system. EBITDA grew 17% YoY to INR9.3b (our est. of INR7.6b), while reported net profit increased 20% YoY to INR6.7b. Other...
Global equities consolidating We remain constructive on global equities as the MSCI ACWI, ACWI ex-U.S., and EAFE indexes consolidate above their respective 200-day moving averages. On the other hand, the MSCI EM index is breaking below its 200-day moving average and is flirting with a breakdown below 56,000 support (local currency). Weakness within EM raises concerns that global equities may also succumb to weakness... see charts below. • Global equities consolidating. We take a look at the...
Bharat Electronics: Beat on all fronts; valuations attractive (BHE IN, Mkt Cap USD2.9b, CMP INR84, TP INR110, 32% Upside, Buy) Operational results above our estimates: BHE's 3QFY19 revenue increased 8.4% YoY to INR27.2b (v/s our estimate: INR28.4b), primarily driven by execution of electronic voting machines (EVM)/ Voter verifiable paper audit trail (VVPAT) orders (INR8b). EBITDA grew 72.5% YoY to INR7.7b (our estimate: INR4.9b), which includes custom duty reversal of INR0.5b and adjustin...
BHARAT ELECTRONICS: Beat on all fronts, despite high share of low-margin EVM sales (BHE IN, Mkt Cap USD2.9b, CMP INR88, TP INR105, 20% Upside, Buy) Operational results meaningfully above our estimates: BHE’s revenue increased 37% YoY to INR33.8b (our estimate: INR28.4b) in 2QFY19, primarily driven by execution of electronic voting machines (EVM)/ Voter verifiable paper audit trail (VVPAT) orders (INR12b). EBITDA grew 44% YoY to INR8.5b (our estimate: INR4.7b), while net profit increased 3...
Bharat Electronics: Limited impact of new pricing policy; Capex planned at INR25b over next 3-4 years (BHE IN, Mkt Cap USD2.6b, CMP INR84, TP INR100, 19% Upside, Buy) We highlight key takeaways from the Bharat Electronics analyst meet: Limited impact of change in pricing policy: As per the new pricing policy for nomination projects finalized by the Ministry of Defense (MoD) in May 2018, a 7.5% PBT margin would be allowed v/s the earlier 10-12% margin; however, this allows pass-through o...
We hosted a call with the BEL mgmt. to understand the impact of the margin rationalisation by Ministry of Defence (MOD). Key takeaways: Margins rationalised from 12.5% to 7.5% on prospective nomination orders: The Ministry of Defence (MOD) has rationalised the threshold PBT margins on prospective contracts awarded on a nomination basis to 7.5% for all Defence PSUs vs 12.5% earlier. Earlier, BEL was eligible for 12.5% margin only on the value add part of the order. Under the new pricing policy...
Bharat Electronics | Annual Report UPDATE: New pricing policy has limited impact on profitability; Strategies planned to drive sustained growth (BHE IN, Mkt Cap USD3.1b, CMP INR91, TP INR120, 31% Upside, Buy) In this report, we attempt to understand the implications of the Ministry of Defense’s (MoD) new pricing policy for Bharat Electronics (BHE). We also delve into BHE’s FY18 annual report to get insights into the company’s performance and strategy. Key highlights: Implication of the ne...
Q1FY19 result highlights PAT at Rs1.8bn (+43.4% yoy): was sharply ahead of estimates on strong operational performance, partly offset by lower other income (-88% yoy; lower cash on Rs3.7bn buyback as also increase in capex and working capital). Robust revenues (+21.9% yoy to Rs21.9bn): led by strong pick up in execution of major orders Integrated Air command & control system (IACCS), Electronic Warfare Systems (EWS), Weapon Locating Radar (WLR), etc. Additionally, execution of Electronics Vo...
Bharat Electronics: Beat on all fronts despite high share of low-margin EVM orders (BHE IN, Mkt Cap USD4.1b, CMP INR116, TP INR145, 25% Upside, Buy) Operational results were meaningfully above our estimates. BHE’s revenue increased 22% YoY to INR21.0b (our estimate: INR18.6b) in 1QFY19, primarily driven by execution of EVM/VVPAT orders (INR4.5b). EBITDA grew 88% YoY to INR3.1b (our estimate: INR1.7b), while net profit increased 43.4% YoY to INR1.8b. Other income declined to INR89m from IN...
Bharat Electronics: Results disappoint – execution weak, margins shrink (BHE IN, Mkt Cap USD4.3b, CMP INR119, TP INR150, 26% Upside, Buy) 4QFY18 operational results below expectations: BHE reported revenue of INR36.1b (-9.5% YoY; our estimate: INR38.4b) and operating profit of INR8b (-19% YoY; our estimate: INR10b). Net profit declined 29.4% YoY to INR5.6b. For FY18, BHE booked revenue of INR103b (+20%), EBITDA was INR20b (+14%), and PAT was INR14b (-9.6%). Key projects executed in FY1...
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