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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bhagwati Auto

Simm. Marshall

Bharat Gears

IP Rings

Duncan Engg.

Pritika Engineer

Machino Plastics

Setco Automotive

Shivam Autotech

G G Automotive

AVATAR Industrie

Why is Bharat Gears Ltd ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.25

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.25
The company has been able to generate a Return on Equity (avg) of 9.03% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.29% over the last 5 years

Flat results in Jun 26

PAT(Q) At Rs 0.15 cr has Fallen at -90.9%
OPERATING CF(Y) Lowest at Rs 29.45 Cr
OPERATING PROFIT TO INTEREST (Q) Lowest at 2.50 times

With ROCE of 7.5, 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 26.91%, its profits have risen by 285.8% ; the PEG ratio of the company is 0

Majority shareholders : Promoters

Market Beating Performance

The stock has generated a return of 26.91% in the last 1 year, much higher than market (BSE500) returns of 2.91%

Real-Time Research Report

Verdict Report

How much should you hold?

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

26.91%

0.48

55.87%

Sensex

-3.2%

-0.24

13.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.29%

EBIT Growth (5y)

20.58%

EBIT to Interest (avg)

1.18

Debt to EBITDA (avg)

2.91

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

3.16

Tax Ratio

25.02%

Dividend Payout Ratio

9.30%

Pledged Shares

Institutional Holding

1.35%

ROCE (avg)

9.21%

ROE (avg)

9.03%

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

1.36

EV to EBIT

7.98

EV to EBITDA

4.53

EV to Capital Employed

1.26

EV to Sales

0.28

PEG Ratio

0.04

Dividend Yield

ROCE (Latest)

7.47%

ROE (Latest)

11.44%

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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

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

15What is working for the Company

PAT(Latest six months)

At Rs 5.22 cr has Grown at 55.36%

DPS(Y)

Highest at Rs 1.00

DPR(Y)

Highest at 9.30%

NET SALES(Q)

Highest at Rs 215.65 cr

-11What is not working for the Company

PAT(Q)

At Rs 0.15 cr has Fallen at -90.9%

OPERATING CF(Y)

Lowest at Rs 29.45 Cr

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.50 times

PBDIT(Q)

Lowest at Rs 8.12 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 3.77%

PBT LESS OI(Q)

Lowest at Rs -0.21 cr.

EPS(Q)

Lowest at Rs 0.10

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Here's what is working for Bharat Gears

Net Sales - Quarterly

Highest at Rs 215.65 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Dividend per Share (DPS) - Annually

Highest at Rs 1.00

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 9.30%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Bharat Gears

Profit After Tax (PAT) - Quarterly

At Rs 0.15 cr has Fallen at -90.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 2.50 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow - Annually

Lowest at Rs 29.45 Cr

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 8.12 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 3.77%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -0.21 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.10

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)