Bharat Gears Ltd (BHARATGEAR) 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

Bharat Gears

Bhagwati Auto

Pritika Engineer

SNL Bearings

Him Teknoforg.

Duncan Engg.

Machino Plastics

Simm. Marshall

Setco Automotive

LGB Forge

Thaai

Why is Bharat Gears Ltd ?

With a growth in Operating Profit of 110.21%, the company declared Outstanding results in Sep 25

The company has declared positive results for the last 3 consecutive quarters
OPERATING CF(Y) Highest at Rs 48.97 Cr
PBT LESS OI(Q) At Rs 7.66 cr has Grown at 395.75%
PAT(Q) At Rs 7.22 cr has Grown at 730.3%

With ROCE of 7.2, it has a Attractive valuation with a 1.3 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 24.58%, its profits have risen by 102.8% ; the PEG ratio of the company is 5.7

Majority shareholders : Promoters

Market Beating Performance

The stock has generated a return of 24.58% in the last 1 year, much higher than market (BSE500) returns of 5.48%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Bharat Gears should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Bharat Gears for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Bharat Gears

24.58%

0.46

53.12%

Sensex

5.37%

0.47

11.36%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.28%

EBIT Growth (5y)

24.84%

EBIT to Interest (avg)

1.19

Debt to EBITDA (avg)

2.91

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

3.16

Tax Ratio

89.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.42%

ROCE (avg)

9.21%

ROE (avg)

8.16%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

588

Industry P/E

Price to Book Value

1.40

EV to EBIT

17.41

EV to EBITDA

6.40

EV to Capital Employed

1.26

EV to Sales

0.34

PEG Ratio

5.71

Dividend Yield

ROCE (Latest)

7.23%

ROE (Latest)

0.24%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

32What is working for the Company

OPERATING CF(Y)

Highest at Rs 48.97 Cr

PBT LESS OI(Q)

At Rs 7.66 cr has Grown at 395.75%

PAT(Q)

At Rs 7.22 cr has Grown at 730.3%

ROCE(HY)

Highest at 9.07%

OPERATING PROFIT TO INTEREST(Q)

Highest at 4.75 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.65 times

NET SALES(Q)

Highest at Rs 204.74 cr

PBDIT(Q)

Highest at Rs 17.04 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 8.32%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Bharat Gears

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 7.66 cr has Grown at 395.75%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 7.22 cr has Grown at 730.3%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 48.97 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 4.75 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 204.74 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 204.74 cr has Grown at 24.40%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 17.04 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 8.32%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 7.66 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 7.22 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.65 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio