Buy Bharat Electronics Ltd for the Target Rs. 490 by Motilal Oswal Financial Services Ltd

* We expect revenue growth of 15% YoY, led by the healthy execution of the order book of INR749b.
* Key monitorables include update on orders for subsystems and 97 LCA MK1A aircraft, execution of orders for LRSAM and EW projects, incremental share of exports, and working capital cycle.
* We expect margins to contract 290bp YoY to 27.4% on a high base.
* The status of EoI for AMCA, finalization of emergency procurement-related orders, execution of the huge backlog, and further indigenization of modules and subsystems will remain key areas of focus.
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