ReElement Technologies stock soars after securing $1.4B government deal
Investing.com - UBS raised its price target on Bharat Electronics Ltd (NS:BHE) to INR500.00 from INR450.00 while maintaining a Buy rating, citing the company’s strong quarterly performance.
Bharat Electronics reported robust growth with revenue increasing 26% year-over-year, while EBITDA rose 22% and profit after tax grew 18%. These results beat consensus estimates by 7%, 18%, and 14% respectively, and exceeded UBS’s own projections by 11%, 15%, and 13%.
New orders reached Rs53.6 billion in Q2 and Rs129.7 billion in the first half of the fiscal year, representing year-over-year increases of 117% and 74% respectively. Management has guided for over Rs550 billion in orders for fiscal year 2026, which presents potential upside to the consensus estimate of Rs385 billion.
First-half sales and EBITDA grew 16% and 26% year-over-year, suggesting earnings upside potential as consensus estimates currently reflect 17% revenue growth and modest 5% EBITDA growth for the second half. Of the Rs129 billion in first-half sales, Rs40 billion came from 6-7 key projects including LRSAM, Himshakti, and Akash.
The company expects second-half topline of approximately Rs170 billion, which includes execution of various projects such as LRSAM, Himshakti, Akash, Rudra, and D29 EW, potentially maintaining a margin profile similar to the first half’s 28.8%.
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