Bharat Electronics hits 52-week low of Rs 377 on 5 Oct

Bharat Electronics Limited hit a 52-week low of Rs 377 on 5 October as defence stocks extended their slide, about 20 percent below its Rs 473.45 high. Q1 FY27 (27 July, standalone): - Revenue: Rs 5,533 crore, up 25.3% YoY from Rs 4,417 crore - EBITDA: Rs 1,430 crore; margin 25.83% (management cites product mix) against a FY27 guide above 28% - PAT: Rs 1,048 crore, up 8.2% from Rs 969 crore; EPS Rs 1.43 - Orders: Q1 inflow Rs 3,754 crore against a FY27 guide above Rs 55,000 crore; order book Rs 72,258 crore Inflow is back-loaded. QRSAM, a programme of about Rs 30,000 crore that management expected cleared by September, still awaits CCS approval. MOFSL's Q2 preview (5 October) has revenue up 16%, margin 27.7% and a Rs 530 target. Q2 results: date not yet out; last year 31 October. BEL [][***** shares trade at Rs 380.92 at 9:22 AM IST on 6 October on StockGro, down 3.9 percent in a month. P/E 45.29; sector P/E near 48. My view: hold, not a fresh entry. The low is not cheap: 45x trailing sits near the sector's 48x, and PAT grew 8.2% on 25.3% revenue growth because margin fell to 25.83%. Brokers see value (HDFC Sky's add zone is Rs 370 to 380, below a Rs 405 to 420 band), but MOFSL's 27.7% Q2 margin would still sit under the 28% guide, and Q1 inflow was 7% of the annual guide. Holders stay into Q2 results. Fresh money waits for a margin at or above 27.7% and CCS clearance for QRSAM. Support Rs 377 (5 October low); no sourced resistance before Rs 405, the floor of that band. My exit is a close below Rs 377, or a Q2 margin under 25.83%. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.