2025-05-20-Jefferies-巴拉特电子（BHE）_息税折旧摊销前利润超出50_；长期能见度提升_13页_876kb

Bharat Electronics (BEL) Equity Research Summary

Executive Summary

BEL is a leading Indian defense electronics company with a strong position in government defense contracts. The report recommends a "Buy" rating with an updated price target of INR420, reflecting improved growth visibility. Key strengths include high EBITDA margins, robust order flow, and medium-term revenue and profit targets.

Key Highlights

• Financial Performance: 4QFY25 EBITDA margin beat of 30.6% (up 980 bps YoY), exceeding guidance. FY25 revenue growth was 17% vs. 15% guidance, and FY26E EPS guidance is maintained at 28%.
• Order Book and Pipeline: FY26 annual order flow guidance at Rs270 bn (up YoY), including emergency procurements. A Rs930 bn 3-year pipeline supports 18-20% revenue growth over FY25-30.
• Growth Drivers: Defense indigenization, increased government capital expenditure, and large projects like QRSAM missiles (up to Rs300 bn order).

Investment Thesis

• BEL is positioned as a market leader with clear visibility in defense electronics. Confidence in medium-term revenue growth of 15-20%, driven by government spending and indigenization. Valuation is based on a 40x FY27E PE multiple, valuing BEL at INR420, up 16% from prior target.

Risks

• Downside includes potential slowdown in defense indigenization, unsustainable cost controls, regulatory roadblocks affecting defense orders, or slower-than-expected execution.

Valuation

• Current PT: INR420 vs. prior INR363.55.
• Metrics: High PE and PB multiples reflect optimism; downside if growth or margins falter. FY27E EPS projected at Rs10.5.