Bharat Heavy Electricals Ltd. (BHEL) 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

Hitachi Energy

BHEL

Siemens

GE Vernova T&D

CG Power & Ind

A B B

Schneider Elect.

Suzlon Energy

Inox Wind

Thermax

Siemens Ener.Ind

Why is Bharat Heavy Electricals Ltd. ?

Healthy long term growth as Net Sales has grown by an annual rate of 12.26% and Operating profit at 18.75%

Flat results in Sep 25

DEBTORS TURNOVER RATIO(HY) Lowest at 0.42 times
DEBT-EQUITY RATIO(HY) Highest at 4.44 times
NON-OPERATING INCOME(Q) is 34.98 % of Profit Before Tax (PBT)

With ROCE of 3.2, it has a Expensive valuation with a 3.7 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 10.35%, its profits have risen by 25.6% ; the PEG ratio of the company is 6.8

High Institutional Holdings at 24.9%

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 10.35% 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 BHEL should be less than 10%
Overall Portfolio exposure to Heavy Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Heavy Electrical Equipment)

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

Is BHEL for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

BHEL

10.35%

0.30

34.86%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.26%

EBIT Growth (5y)

18.75%

EBIT to Interest (avg)

-0.54

Debt to EBITDA (avg)

7.58

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.72

Tax Ratio

27.87%

Dividend Payout Ratio

32.61%

Pledged Shares

Institutional Holding

24.90%

ROCE (avg)

-0.66%

ROE (avg)

1.63%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

173

Industry P/E

Price to Book Value

3.96

EV to EBIT

113.51

EV to EBITDA

84.37

EV to Capital Employed

3.66

EV to Sales

3.40

PEG Ratio

6.76

Dividend Yield

0.19%

ROCE (Latest)

3.22%

ROE (Latest)

2.29%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

10What is working for the Company

PBT LESS OI(Q)

At Rs 324.62 cr has Grown at 976.68%

PAT(Q)

At Rs 374.89 cr has Grown at 253.2%

OPERATING CF(Y)

Highest at Rs 2,191.89 Cr

DPR(Y)

Highest at 32.61%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 81,541.30 cr

-5What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.42 times

DEBT-EQUITY RATIO(HY)

Highest at 4.44 times

NON-OPERATING INCOME(Q)

is 34.98 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for BHEL

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 324.62 cr has Grown at 976.68%

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 374.89 cr has Grown at 253.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 2,191.89 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 81,541.30 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio (DPR) - Annually

Highest at 32.61%

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 BHEL

Debtors Turnover Ratio- Half Yearly

Lowest at 0.42 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

is 34.98 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debt-Equity Ratio - Half Yearly

Highest at 4.44 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 174.61 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income