• Non availability of input equipment on timely basis led to miss on the revenue front. Bharat Electronics (BEL) quarterly performance stood meaningfully below expectation mainly impacted by weak execution.

• Revenue 14% YoY growth during 3QFY20. With input equipment supply issues now being resolved and LRSAM order to contribute to top line from 4QFY20 onwards, The revenue booking momentum are expected to see pick up in 4QFY20.

• The earnings estimate can be seen down for FY20/21 by 14/16% respectively to factor in prevailing challenges that BHE has faced on the execution and margin front during 9MFY20.

• Healthy order book, clean balance sheet and valuations of the stock at 15x FY22 earnings.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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