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Check Before You Invest : Bharat Gears Ltd

BSE: 505688 NSE: BHARATGEAR ISIN: INE561C01019
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Bharat Gears Ltd belong to?
Bharat Gears Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Bharat Gears Ltd a good quality company?
Bharat Gears Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Bharat Gears Ltd undervalued or overvalued?
Bharat Gears Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Bharat Gears Ltd a good buy now?
Bharat Gears Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Bharat Gears Ltd?
Bharat Gears Ltd revenue growth is -2.3% for FY-2025 , which is below its 5 year CAGR of 6.9% , indicating slower growth.
Q.2 Gross Profit margin of Bharat Gears Ltd?
Bharat Gears Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.7% for FY-2025 , which is below its 5 year median of 2.9% , indicating decreasing margins.
Q.3 Operating Profit Margin of Bharat Gears Ltd?
Bharat Gears Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.91% for FY-2025 , which is below its 5 year median of 6.03% indicating decreasing margins.
Q.4 Net Profit Margin of Bharat Gears Ltd?
Bharat Gears Ltd Net Profit Margin is 0.49% for FY-2025 , is in line with with its 5 year median of 0.49%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 1.7 2.9
Operating Profit Margin 3.91 6.03
Net Profit Margin 0.49 0.49
Q.5 Return on Asset of Bharat Gears Ltd?
Bharat Gears Ltd Return on Asset is 0.87%, which is in line with its 5 year historical median of 0.87%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Bharat Gears Ltd?
Bharat Gears Ltd Return on equity is 2.85% for FY-2025 , which is in line with its historical median of 2.85%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Bharat Gears Ltd?
Bharat Gears Ltd Return on capital employed is 11.11% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Bharat Gears Ltd?
Bharat Gears Ltd Cash conversion cycle is 38 days, above its historical median of 38 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.78 1.78
ROE 2.85 2.85
ROCE 11.11 11.11
Cash Conversion Cycle 38 days 38 days
Q.9 Debt to Equity ratio of Bharat Gears Ltd?
Bharat Gears Ltd Debt-to-Equity ratio is 0.54 , which is above with the industry average of 0.4 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Bharat Gears Ltd?
Bharat Gears Ltd Debt to cash flow from operations is 1.25 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bharat Gears Ltd?
Promoters hold 55.33% of the Bharat Gears Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Bharat Gears Ltd vs industry peers?
Bharat Gears Ltd revenue CAGR is 6.93% , compared to the industry median CAGR of 11.82% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 647.5 492.3
Gross Profit 11 44.4
Operating Profit 25 47
Net Profit 3 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.78 1.23
ROE 2.85 11.57
ROCE 11.11 13.36
Cash Conversion Cycle (days) 38 47

Valuation & price assessment

Q.1 Stock return of Bharat Gears Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 8.7% 18.6% -3.4% 46.7%
Q.3 Valuation ratios of Bharat Gears 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 12.74 8.78 39.31
Price to Book 1.35 1.49 2.88
Price to Sales 0.22 0.24 1.29
EV to EBITDA 3.84 5.27 11.85

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