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Bharat Heavy Electricals Ltd. Stock Analysis

Mid Cap
Evaluated by 20514 users | BSE: 500103 | NSE: BHEL |
Engineering - Industrial Equipments

Bharat Heavy Electricals Limited (BHEL) is a celebration of India’s industrial achievements. It is established in 1964. It is one of India’s largest engineering and manufacturing enterprises in the energy and infrastructure sectors and a leading...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bharat Heavy Electricals Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 32.88%30.54%22.88%9.14%5%-2.23%3%2.14%4.28%-3.97%
Value Creation Index 1.381.110.58-0.37-0.65-1.15-0.79-0.85-0.70-1.27
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 42,03747,73148,11838,82430,01825,48328,44728,81330,42321,486
Y-o-Y Gr. Rt.-13.5%0.8%-19.3%-22.7%-15.1%11.6%1.3%5.6%-29.4%
Adjusted EPS (Rs.) 16.1718.9817.688.174.59-2.711.871.273.34-5.12
Y-o-Y Gr. Rt.-17.4%-6.9%-53.8%-43.8%-159%NA-32.1%163%-253.3%
Book Value per Share (Rs.) 54.8969.1182.9290.0192.8487.6587.9688.890.2783.8
Adjusted Net Profit 5,9386,9686,4903,0001,686-9946854671,163-1,784
Net Op. Cash Flow (Rs. Cr.) 2,659-8141,8654,518775347562991-3,856-2,891
Debt to Cash Flow from Ops 0.06-0.230.80.60.150.580.270.1-0.67-1.75
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Bharat Heavy Electricals Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -7.2%-6.5%-8.9%-29.4%
Adjusted EPS -188%-202.2%-239.9%-253.3%
Book Value per Share 4.8-2-1.6-7.2
Share Price -17.4% -23.1% -30.3% -44.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 32.9330.6123.259.455.02-32.121.443.63-5.89
Operating Profit Margin (%) 18.3518.9916.398.342.61-12.71-8.72-2.58-0.37-16.84
Net Profit Margin (%) 14.1314.613.497.735.62-3.92.411.623.82-8.3
Debt to Equity 0.010.010.050.0800.01000.080.17
Working Capital Days 329376453565694754606519521773
Cash Conversion Cycle 1591671962513103382531355798
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 63.17%
Institutions 19.82%
Non-Institutions 17.01%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Bharat Heavy Electricals Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Bharat Heavy Electricals Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Bharat Heavy Electricals Ltd.'s performance infers:

Bharat Heavy Electricals Ltd. earnings have declined by -202.2%, whereas share price has depreciated -23.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Bharat Heavy Electricals Ltd. share prices over the last 10 years. Here is what we found out:

Bharat Heavy Electricals Ltd. share price has depreciated -20% annually over the past ten years.

Bharat Heavy Electricals Limited (BHEL) is a celebration of India’s industrial achievements. It is established in 1964. It is one of India’s largest engineering and manufacturing enterprises in the energy and infrastructure sectors and a leading power equipment manufacturer globally.

All the entities of the company are accredited to ISO 9001:2015, Quality Management Systems, with major manufacturing units

Bharat Heavy Electricals Limited (BHEL) is a celebration of India’s industrial achievements. It is established in 1964. It is one of India’s largest engineering and manufacturing enterprises in the energy and infrastructure sectors and a leading power equipment manufacturer globally.

All the entities of the company are accredited to ISO 9001:2015, Quality Management Systems, with major manufacturing units also accredited to Environmental Management Systems, ISO 14001:2015, and Occupational Health & Safety Management Systems, OHSAS 18001:2007.

Business area of the company

The company is one of the largest engineering and manufacturing companies of its kind in India, engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products, services and systems for core sectors of the economy, viz. Power Generation, Transmission, Industry, Transportation, Renewable Energy, Oil & Gas, Water, Defence & Aerospace, and E-Mobility & Energy Storage Solutions.

Products & Services

  • Thermal Power Plants
  • Nuclear Power Plants
  • Gas-Based Power Plants
  • Hydro Power Plants
  • Solar Power System
  • DG Power Plants
  • Desalination And Water Treatment Plants
  • Boilers
  • Boiler Auxiliaries
  • Soot Blowers
  • Valves
  • Piping Systems
  • Seamless Steel Tubes
  • Steam Turbines
  • Turbogenerators
  • Industrial Sets
  • Castings And Forgings
  • Condenser And Heat Exchangers
  • Pumps
  • Compressors
  • Solar Photovoltaics
  • Automation And Control Systems
  • Transmission Systems Control
  • Software System Solution
  • Switchgear
  • On Load Tap Changers (OLTC)
  • L T Switchgear & Bus Ducts
  • Transformers & Reactors
  • Capacitors
  • Bushings
  • Control Gear
  • Insulators
  • Electrical Machines
  • Transportation Systems
  • Transportation Equipment
  • Energy Storage System & E- Mobility
  • Oil Field Equipment
  • Fabricated Equipment And Mechanical Packages

Awards

2011

  • BHEL employees win 5 Vishwakarma National Awards and BHEL Units bag 3 National Safety Awards 
  • BHEL wins ICWAI National Awards for Excellence in Cost Management for the sixth consecutive year; maximum number of awards conferred on BHEL among public and private sector companies 
  • BHEL gets Golden Peacock Award 2011 for Occupational Health and Safety 
  • BHEL bags Intellectual Property Award 2011 
  • BHEL receives Essar Steel Infrastructure Excellence Award 2011 
  • BHEL wins DSIJ Gentle Giant Award 2011 

2012

  • BHEL gets the D and B Best PSU award in the Electrical and Electronics category 
  • BHEL gets the BT-Star Award for the most Innovative PSU in the Maharatna/Navratna category

2013

  • BHEL wins India Pride Award 2013 for Excellence in Heavy Industries 
  • BHEL bags PSE Excellence Award 2013 for RnD, Technology Development and Innovation
  • BHEL conferred BGR-ENERTIA Commemoration Award for Technology Enterprise Innovation - Conventional Energy  

2014

  • BHEL bags PSE Excellence Award 2014 for R and D and Technology Development 
  • BHEL wins ICAI National Award for Excellence in Cost Management for the ninth consecutive year 
  • BHEL conferred Skoch Foundation Order of Merit Awards 

2015

  • BHEL wins DSIJ Award 2015 for the Most Efficient Maharatna PSU 
  • BHEL wins Best Overall Performance Award 
  • BHEL wins Award for Best R and D and Innovation 
  • BHEL bags EEPC's Top Export Award for the 25th consecutive year 
  • BHEL bags PSE Excellence Awards for Human Resource Management Excellence and for R and D Technology Development and Innovation 
  • BHEL wins India Pride Award 2014-15 for Excellence in Heavy Industries 

2016

  • BHEL wins Golden Peacock HR Excellence award 2016 
  • BHEL wins Awards for Excellence in R and D and Technology Adoption 
  • BHEL wins the EEPC Export Excellence Award for the 26th consecutive year 
  • BHEL bags PSE Excellence Awards for Human Resource Management Excellence and for R and D Technology Development and Innovation
  • BHEL honoured with Excellence Award by POWERGRID 
  • BHEL wins BML Munjal Award for 'Business Excellence through Learning and Development'

2017

  • BHEL bags PSE Excellence Awards for R and D, Technology Development and Innovation, Human Resource Management Excellence and for Contribution of Women in PSEs 
  • CMD, BHEL conferred Industry Honour for 'Visionary Leadership in Heavy Engineering' 
  • CMD, BHEL honoured as eminent engineering personality by The Institution of Engineers 
  • BHEL adjudged the Best Power Equipment Manufacturing Organisation 

2018

  • BHEL wins PSE Excellence Award 2018 for Corporate Governance 
  • BHEL wins ICAI National Award for Excellence in Cost Management 
  • BHEL wins Six National Safety Awards 
  • BHEL wins EEPC Export Excellence Award 
  • BHEL wins India Pride Award 2017-18 for Excellence in Heavy Industries 
  • BHEL wins CBIP Award 2018 for 'Best Power Equipment Manufacturing Organisation' 

2019

  • BHEL wins Indian Green Energy Award 2019 
  • Dun & Bradstreet PSU Award 2019 in manufacturing, processing & generation- Heavy & Medium Engineering category for its contribution to the country's development.
  • Safety Innovation Award 2019 by The Institution of Engineers.
  • Asia Pacific Entrepreneurship Award 2019 under corporate excellence in the field of Engineering Industry.
  • Golden Globe Tigers Award 2019 for excellence in HR Leadership under the category- Dream Company to Work for Golden Peacock Award 2019 for corporate social responsibility.
  • Golden Peacock Award 2019 for corporate social responsibility.
  • BHEL Hyderabad Provident Fund Trust has been conferred with the 'Best Performing Exempted PF Trust Award' by Employees' Provident Fund Organizations (EPFO) at its 67th Foundation Day celebration.
  • National Best Employer Brand Award 2019 for initiatives in talent development, succession planning, retention & talent attraction by World HRD Congress.

2020

  • BHEL wins Governance Now PSU Awards 2020 in three categories.

Milestones

2011

  • BHEL joins hands with Abengoa to develop Concentrated Solar Power projects in India 

2012

  • BHEL develops India first Ultra High Voltage AC 1200 kV Transformer through in-house Research and Development efforts 

2013

  • BHPV Merged with BHEL; Becomes Seventeenth Unit of BHEL 
  • BHEL reaffirms commitment towards environmental concerns; Acquires state-of-the-art technology for controlling pollution from thermal power plants 

2014

  • BHEL, HSL and Midhani join hands for Indigenous Submarine project 
  • BHEL further scaling up Research and Development efforts - Organizes Industry Academia meet to explore potential research areas of collaboration with leading Indian Institutes of Technology 

2015

  • BHEL holds Annual Industry-Academia Meet; Signs MoU with IIT Roorkee 
  • BHEL signs three strategic MoUs in Kazakhstan 
  • BHEL launches online Supplier Registration Portal 

2016

  • BHEL consolidates its global footprint Forays into two new countries - Togo and Benin 
  • BHEL and NHPC sign Contract Agreement 
  • BHEL further expands footprint in Afghanistan 

2017

  • BHEL signs Technology Collaboration Agreement with Kawasaki Heavy Industries Ltd. for Manufacture of Stainless Steel Coaches for Metros 
  • BHEL and Indian Railways tie up for Rooftop SPV Systems 
  • BHEL signs MoU with NEERI for joint working on projects related to water and waste water treatment 

2018

  • BHEL signs Technology Collaboration Agreement with Babcock Power Environmental Inc., USA
  • BHEL Renovates RCC drain and builds modern Public Utility Complex in Noida as part of CSR initiatives 
  • BHEL signs Technology Transfer Agreement with ISRO for manufacture of Space Grade Lithium-ion cells 
  • BHEL signs Technology Collaboration Agreement with HLB Power, Republic of Korea 

2019

  • BHEL signs MoU with CSIR for commercialisation of indigenously developed technologies
  • BHEL signs MoU with NTPC to set up world’s most efficient & environmental friendly coal-fired power plant 
  • BHEL and CONCOR to jointly set up Rail-based Logistics Facility at Haridwar
  • BHEL signs MoU with ARAI for e-mobility projects 

2020

  • AatmaNirbhar Bharat - BHEL showcases capabilities for developing self-reliance in manufacturing 
  • BHEL launches ‘Quality First’ Initiative 
  • BHEL signs MoU with Rosoboronexport, Russia 
  • BHEL launches multi-dimensional Transformation Strategy; Focuses on converting challenges of rapidly changing business environment into opportunities 
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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