Bharat Gears Ltd Stock Analysis

BSE: 505688 | NSE: BHARATGEAR | Auto Ancillary | Small Cap

BSE Share Price 25-Nov-2022 18:01
126.65 1.50 (1.20%)

DeciZen - Make an Informed Decision on Bharat Gears

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Bharat Gears Price Chart

P/E Ratio (SA) :
9.02
Market Cap :
194.5 Cr.
52-wk low :
80.4
52-wk high :
173
Bole Toh?

1. Is Bharat Gears Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Bharat Gears Ltd is a below average quality company.

2. Is Bharat Gears Ltd undervalued or overvalued?

The key valuation ratios of Bharat Gears Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Bharat Gears Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Bharat Gears Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Bharat Gears:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 Gears 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 8.3%5.6%3.7%6.1%5.1%9%11%-2.7%3.7%17.4%-
Value Creation Index -0.4-0.6-0.7-0.6-0.6-0.4-0.2-1.2-0.70.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 393420415398407507594463503729776
YoY Gr. Rt. %-6.9%-1.2%-4.2%2.3%24.6%17.3%-22.1%8.6%45%-
Adj EPS 2.9-0.8-3.9-0.7-1.14.47.5-14.9-5.713.914
YoY Gr. Rt. %--125.9%NANANANA72%-299.2%NANA-
BVPS (₹) 56.155.851.8525258.466.4555170.580.8
Adj Net Profit 3.7-1-5-0.9-1.55.810-21.6-8.221.322
Cash Flow from Ops. 25.926.919.723.320.36.150.153.65930.3-
Debt/CF from Ops. 2.93.75.14.25.521.83.22.81.93.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.1%12.4%7.1%45%
Adj EPS 19%NA22.9%NA
BVPS 2.66.3238.2
Share Price 13.6% 1.5% 40.5% 22.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 5-1.3-6.8-1.3-2.1812-25.7-10.723.418.6
Op. Profit Mgn % 7.26.15.37.76.98.59.947.197.5
Net Profit Mgn % 1-0.2-1.2-0.2-0.41.11.7-4.7-1.62.92.8
Debt to Equity 1.11.41.51.51.71.71.81.91.50.90.6
Working Cap Days 129121135140148160162219190128128
Cash Conv. Cycle 5150362135465161352632

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 18.60%

Net Profit is growing at healthy rate in last 3 years 22.85%

Debt to equity has declined versus last 3 years average to 0.93

Sales growth is good in last 4 quarters at 14.86%

Sales growth has been subdued in last 3 years 7.06%

Latest Financials - Bharat Gears Ltd.

Standalone Consolidated
TTM EPS (₹) 14 -
TTM Sales (₹ Cr.) 776 -
BVPS (₹.) 80.8 -
Reserves (₹ Cr.) 109 -
P/BV 1.57 -
PE 9.02 -
From the Market
52 Week Low / High (₹) 80.43 / 173.00
All Time Low / High (₹) 2.86 / 173.00
Market Cap (₹ Cr.) 194
Equity (₹ Cr.) 15.4
Face Value (₹) 10
Industry PE 36.1

Management X-Ray of Bharat Gears :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Bharat Gears

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Bharat Gears Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Bharat Gears on 25-Nov-2022 18:01 is : 126.7.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 25-Nov-2022 18:01 the market cap of Bharat Gears stood at ₹ 194.5.
The latest PE ratio of Bharat Gears as of 25-Nov-2022 18:01 is 9.02.
The latest PB ratio of Bharat Gears as of 25-Nov-2022 18:01 is 1.57
The 52-week high of Bharat Gears is ₹ 173.0 and the 52-week low is ₹ 80.43.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Bharat Gears is ₹ 775.6 ( Cr.) .

About Bharat Gears Ltd

Bharat Gears was founded by the tireless Raunaq Singh, a man who aspired to take on the challenges of the liberalization of the Indian economy and the opportunities of the 21 st Century. With his dynamic leadership, Raunaq Singh was instrumental in strengthening Bharat Gears to leadership position it is in today.

Incorporated on 23rd December 1971, BGL is India's largest gear manufacturer. Since commencing business in 1974, BGL entered into the technical know-how with Holcroft, Michigan, U.S.A. for manufacturing Furnaces in May 1983 and with ZF Friedrichshafen, AG, Germany, in 1985 to Mid May,2007 technical and Financial collaboration for manufacturing Gear Boxes. BGL manufactures a wide range of gears for HCV, MCV, LCV, utility and off-highway vehicles. The products includes bevel, straight bevel and transmission gears.

BGL combines a modern line of machinery from all over the world. BGL manufactures a wide range of hypoid/spiral gears, differential gears and shafts, complete automotive transmissions, gearbox sub-assemblies and differential assemblies. World class parallel axis gear grinding and welding machines are deployed to enhance the capabilities to produce internals for heavy-duty power shift transmissions.

BGL's furnace division builds a variety of furnaces - sealed quench, continuous gas carburisers, rotary hearths etc. with technical know-how from AFC-Holcroft, USA. With niche markets in the OEM segment being serviced from the Mumbra plant, BGL felt the need to penetrate the untapped replacement market that comprises about 50% of the auto component industry. The fresh capacity needed to address the opportunity was achieved by the amalgamation of Universal Steel and Alloys Limited with BGL under a scheme of rehabilitation sanctioned by BIFR effective April 1, 1998. The facilities so acquired at Faridabad was upgraded and expanded in May 2000 at substantial investment. Apart from being the largest manufacturer of gears for OEM's in India, BGL is a major exporter to countries around the world.

Both plants are ISO/TS-16949:2002 & Faridabad Plant is ISO 14001:1996 also.

Milestones:

• 1972- Foundation Stone laid at Mumbra Factory. 

• 1974- Inauguration of the Hypoid Plant and Commencement of Production with 'Gleason Machines'. 

• 1980- First 'Oerlikon Spiromatic Generator' installed. BGL becomes the First Company in INDIA to have both Cutting Systems under one Roof. 

• 1981- Memorandum of Association signed with AFC-Holcroft, U.S.A. for construction of furnaces in India to AFC-Holcroft design.

• 1985-2007- Collaboration Agreement with ZF AG Germany

• 1987- Delivery for ZF S6-36 Gears & Shafts to Ashok Leyland Ltd. and ZFAG, Germany. 

• 1987- Start of Assembly of ZF S5-24 Gear Boxes for Ashok Leyland. 

• 1988- Start of business with DANA CORPORATION, USA 

• 1994- BGL receives ISO 9002 

• 1996- BGL crosses turnover of Rs. 1 Billion. 

• 1998- Foundation Stone for Faridabad Plant Laid 

• 2000- Start of Commercial Production in Faridabad 

• 2000- BGL receives SQ 9000 for Mumbra Plant 

• 2001- BGL receives SQ 9000 for Faridabad Plant 

• 2004- BGL Faridabad starts supply to Toyota Kirloskar Auto Parts 

• 2004- BGL Faridabad receives ISO 14001 certification 

• 2005- BGL Faridabad & Mumbra receives TS 16949 certification 

• 2008- Introduction of Dry Cut Hobbing process 

• 2009- Introduction of Klinglenberg Close Loop CNC Gear Measuring system 

• 2010- Introduction of Bevel Gear dry cutting process with close loop technology 

• 2011 - BGL Faridabad Receives OHSAS 18001 Certification

Divisions:

• Gears

• Furnaces

• Allied Auto Components

Group Company:

Raunaq International-  Raunaq International is an Engineering Contracting Organization managed by dedicated team of professionals at various levels in different disciplines, is engaged in the service of core sector of industries in India. Raunaq International Limited has sufficient in-house resources in terms of Engineering Manpower, Tools and Plants, and Technical know-how besides separate departments for Design and Engineering, Quality Assurance and Inspection etc. to cater the needs for undertaking the Turnkey Contracts of Mechanical, Civil and associated Electrical and Instrumentation works and offer specialized.

Domestic Clients:

1. Carr ro-India Italy, China

2. JDEPL-India 

3. JCB India, UK 

4. Mahindra & Mahindra

5. Paharpur Cooling Towers Ltd. 

6. Ashok Leyland

7. Spicer India

8. Axles India

9. Swaraj Mazda

10. CLAAS-India, France

11. TATA Motors

12. Escorts Ltd.

13. Toyota Kirloskar Auto Parts

Global Clients:

1. Dana Corporation, USA 

2. EATON USA 

3. JDCW, USA 

4. JOHN DEERE Iberica, Spain

5. New Holland Fiat India

6. GE Aviation LLC, USA 

7. Transaxle Manufacturing of America, (TMA) USA

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