Citigroup has cut target price on Bharat Electronics in the long term while maintaining a buy rating. he stock ended down 5.8% at Rs 112.50 on Tuesday while the BSE Sensex closed 53.73 points down at 40,248.23.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 2663.57 crore, up 29.19% from last quarter sales of Rs 2061.72 crore and down -19.08 % from last year same quarter sales of Rs 3291.53 crore. The company has reported net profit after tax of Rs 335.19 crore in the latest quarter.

Investment Rationale

The company’s sales in the second quarter fell 19% from year ago levels likely due to slowerthan-expected execution pace in the large LR-SAM order, said Citigroup. The brokerage said the sales miss is not a cause of concern given the robust backlog of Rs 55,100 crore. The company has won orders worth Rs 9100 crore in first half of FY20 and remains on track to meet FY20 guidance of wins worth Rs 13000-15000 crore, said Citi.

[“source=economictimes”]