Bharat Electronics Ltd (BEL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Garden Reach Sh.

Bharat Electron

Data Pattern

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Why is Bharat Electronics Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.15%

Healthy long term growth as Net Sales has grown by an annual rate of 14.17% and Operating profit at 25.33%
Company has a low Debt to Equity ratio (avg) at 0 times

Flat results in Sep 25

OPERATING CF(Y) Lowest at Rs 480.41 Cr
DPR(Y) Lowest at 33.17%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.37 times

With ROE of 26.4, it has a Very Expensive valuation with a 13.8 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 29.63%, its profits have risen by 25.5% ; the PEG ratio of the company is 2.1

High Institutional Holdings at 39.03%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 29.63% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bharat Electron should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Bharat Electron for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Bharat Electron

29.73%

1.02

29.05%

Sensex

4.71%

0.37

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.17%

EBIT Growth (5y)

25.33%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

1.24

Tax Ratio

25.69%

Dividend Payout Ratio

40.36%

Pledged Shares

Institutional Holding

39.03%

ROCE (avg)

47.81%

ROE (avg)

23.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

13.79

EV to EBIT

41.76

EV to EBITDA

38.97

EV to Capital Employed

21.42

EV to Sales

11.51

PEG Ratio

2.05

Dividend Yield

0.59%

ROCE (Latest)

51.30%

ROE (Latest)

26.41%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DPS(Y)

Highest at Rs 2.40

NET SALES(Q)

At Rs 5,792.09 cr has Grown at 25.78%

PBT LESS OI(Q)

At Rs 1,574.03 cr has Grown at 22.26%

-5What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 480.41 Cr

DPR(Y)

Lowest at 33.17%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.37 times

Loading Valuation Snapshot...

Here's what is working for Bharat Electron

Dividend per Share (DPS) - Annually

Highest at Rs 2.40 and Grown

each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Net Sales - Quarterly

At Rs 5,792.09 cr has Grown at 25.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1,574.03 cr has Grown at 22.26%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Bharat Electron

Operating Cash Flow - Annually

Lowest at Rs 480.41 Cr

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Dividend Payout Ratio (DPR) - Annually

Lowest at 33.17% and Fallen

each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Debtors Turnover Ratio- Half Yearly

Lowest at 2.37 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio