BEL (Medium Term Study)Bharat Electronics Ltd.
Chart Pattern:
- Rounding Bottom Pattern Breakout
- Price consolidating after breakout
- Price at ATH
- Price once came below the previous ATH levels, but didn't sustain even a day. Previous ATH levels now act as strong support for the price.
- Price closed yesterday at ATH after crossing the previous swing high.
Relative Strength:
- Stock outperforming Nifty50 & its sector in 1w, 1m, 3m, 6m, 1y & 2y timeframe.
- Stock is RS+ & RS in inclined upwards.
- From the latest ARS date, the stock has outperformed the index by more than 20%
- Stock's RS History is good. In previous years, whenever stock turned RS+ it gave good returns.
Financial Performance:
- Q2 witnessed Sales growth of 123% QoQ & 15% YoY
- PBT growth stood at 4489% QoQ & 48% YoY
- EPS growth stood at 2460% QoQ & 56% YoY
- The Q2 numbers are not a turnaround. Since the company is a PSU and are manufacturers of defense items, therefore their quarterly results are cyclical in nature.
- Company's Order book as of Q2 FY21 stands at 52,148 Cr with a fresh order inflow of 1,561 Cr. These orders are for the next 4 FYs.
- As per DuPont 5 stage model. Cos. ROE is 19.2% Avg.
- Company has zero debts as of last FY and their Net block and investments are increasing YoY along with the sales & net profits.
At CMP, the stock price is around 15% away from the base of the last consolidation, so it's not overextended; it could offer a good RR in the long run. Being a PSU, this stock might be a slow grower, but it surely will be a grower. Worth keeping on a watchlist and studying thoroughly
