Brokerage released new targets, Motilal and Antique Broking upset up to 48% upset on PSU Stocks

Two major companies of India, Bharat Electronics (BEL) and Gail, presented the results of the third quarter of FY25. In these results, while BEL performed strongly and attracted investors’ attention, Gail faced challenges in some of his segments. Brokerage houses have made their recommendations for both companies based on these results.

BEL: Investors’ choice with great performance

India Electronics has recorded more profits than expected by performing excellent in the quarter. The company’s income increased by 39% and the Ebitda margin reached 28.7%. The order book of BEL is currently in a strong position between ₹ 711-771 billion, and in future the QRSAM, MRSAM, submarine projects and big orders are expected to be received. The company’s income is estimated to have a 19% compound annual growth rate during FY24-27, indicating its better performance.

Both Motilal Oswal and Antique Stock Broking, both expressed confidence in BEL and recommended to buy it (BUY). Antique has given BEL a target price of ₹ 376, while Motilal Oswal has a target of ₹ 360. On January 31, BEL’s stock closed at Rs 292.80. According to the target of antique, it can give 48% in long term and 23% according to Motilal’s target. The reason for BEL’s fast is its strong order book and consistently excellent profits. The company is confident of 15% income hike in FY25 and getting 23–25% Ebitda margin.

GAIL: scope for improvement, advice for investment

On the other hand, GAIL’s performance was weak with expected. The company’s Ebitda was ₹ 28.4 billion, showing a 26% decline on an annual basis. The main reason for this is the loss of losses and expensive spot LNG in the gas marketing segment, causing a loss of ₹ 4.5 billion to the company. The LPG production has also declined, and the petrochemical segment did not perform as expected.

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Motilal Oswal, however, has recommended to buy (BUY) in view of Gail’s possibilities in the long term and set a target price of ₹ 255. Gayle’s stock closed at 177.20 on 31 January. In such a situation, it can give 44% upside in long term. They believe that the increase in transmission volume and the potential tariff increase in FY26 may be positive for the company. On the other hand, Antique Stock Broking has recommended Hold for Gail and has kept the target price ₹ 180. He believes that at present, the company needs to improve its gas trading and LPG production.

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