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INVESTMENT INSIGHTS

Check Before You Invest : Bharat Electronics Ltd

BSE: 500049 NSE: BEL ISIN: INE263A01024
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Defence

Snapshot

Q.1 Which industry/sub-sector does Bharat Electronics Ltd belong to?
Bharat Electronics Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.
Q.2 Is Bharat Electronics Ltd a good quality company?
Bharat Electronics Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Bharat Electronics Ltd undervalued or overvalued?
Bharat Electronics Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Bharat Electronics Ltd a good buy now?
Bharat Electronics Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Bharat Electronics Ltd?
Bharat Electronics Ltd revenue growth is 17.3% for FY-2025 , which is above its 5 year CAGR of 12.9% , indicating faster growth.
Q.2 Gross Profit margin of Bharat Electronics Ltd?
Bharat Electronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.8% for FY-2025 , which is above its 5 year median of 24.9% , indicating increasing margins.
Q.3 Operating Profit Margin of Bharat Electronics Ltd?
Bharat Electronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.96% for FY-2025 , which is above its 5 year median of 22.44% indicating increasing margins.
Q.4 Net Profit Margin of Bharat Electronics Ltd?
Bharat Electronics Ltd Net Profit Margin is 22.35% for FY-2025 , is above with its 5 year median of 17.04%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 31.8 24.9
Operating Profit Margin 27.96 22.44
Net Profit Margin 22.35 17.04
Q.5 Return on Asset of Bharat Electronics Ltd?
Bharat Electronics Ltd Return on Asset is 13.48%, which is above its 5 year historical median of 8.92%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Bharat Electronics Ltd?
Bharat Electronics Ltd Return on equity is 29.56% for FY-2025 , which is above its historical median of 23.52%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Bharat Electronics Ltd?
Bharat Electronics Ltd Return on capital employed is 39.7% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Bharat Electronics Ltd?
Bharat Electronics Ltd Cash conversion cycle is 173 days, above its historical median of 171 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.6 0.54
ROE 29.56 23.52
ROCE 39.7 31.32
Cash Conversion Cycle 173 days 171 days
Q.9 Debt to Equity ratio of Bharat Electronics Ltd?
Bharat Electronics Ltd Debt-to-Equity ratio is 0.00 , which is in line with the industry average of 0 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of Bharat Electronics Ltd?
Bharat Electronics Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bharat Electronics Ltd?
Promoters hold 51.14% of the Bharat Electronics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Bharat Electronics Ltd vs industry peers?
Bharat Electronics Ltd revenue CAGR is 12.86% , compared to the industry median CAGR of 3.82% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 23,658 8,823.1
Gross Profit 7,523.2 2,196.9
Operating Profit 6,615 1,979
Net Profit 5,288 1,503.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.6 0.22
ROE 29.56 11.76
ROCE 39.7 15.3
Cash Conversion Cycle (days) 173.03 85

Valuation & price assessment

Q.1 Stock return of Bharat Electronics Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 29% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 29% 60.9% 65.5% 55.7%
Q.3 Valuation ratios of Bharat Electronics Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 55.97 16.60 41.06
Price to Book 14.56 2.76 7.15
Price to Sales 12.6 2.24 8.05
EV to EBITDA 38.16 9.81 35.11

Check more companies

1. Bharat Electronics
2. Hindustan Aeron
3. ABB India
4. Siemens
5. Polycab India
6. CG Power & Indl.Soln
7. Siemens Energy India
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