Bharat Heavy Electricals Ltd. (BHEL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

BHEL

A B B

Hitachi Energy

GE Vernova T&D

CG Power & Ind

Triveni Turbine

Siemens

Thermax

Schneider Elect.

Suzlon Energy

Siemens Ener.Ind

Why is Bharat Heavy Electricals Ltd. ?

Company has a Debt to Equity ratio (avg) of 0.03 times

Healthy long term growth as Net Sales has grown by an annual rate of 14.59% and Operating profit at 24.67%

With a growth in Net Sales of 40.29%, the company declared Outstanding results in Jun 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CF(Y) Highest at Rs 5,837.38 Cr
PBT LESS OI(Q) At Rs 293.56 cr has Grown at 137.67%
PAT(Q) At Rs 376.71 cr has Grown at 182.7%

High Institutional Holdings at 31.95%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.74% over the previous quarter.

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

It is ranked 3 across all Large Cap and 34 across the entire market

Market Beating performance in long term as well as near term

Along with generating 71.38% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

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, High Return

Absolute

Risk Adjusted

Volatility

BHEL

71.34%

1.97

36.49%

Sensex

-3.7%

-0.27

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.59%

EBIT Growth (5y)

24.67%

EBIT to Interest (avg)

1.64

Debt to EBITDA (avg)

8.09

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

0.76

Tax Ratio

25.25%

Dividend Payout Ratio

30.46%

Pledged Shares

Institutional Holding

31.95%

ROCE (avg)

1.73%

ROE (avg)

2.54%

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

5.36

EV to EBIT

44.64

EV to EBITDA

40.37

EV to Capital Employed

6.08

EV to Sales

3.80

PEG Ratio

0.08

Dividend Yield

0.50%

ROCE (Latest)

9.02%

ROE (Latest)

6.12%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

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

32What is working for the Company

OPERATING CF(Y)

Highest at Rs 5,837.38 Cr

PBT LESS OI(Q)

At Rs 293.56 cr has Grown at 137.67%

PAT(Q)

At Rs 376.71 cr has Grown at 182.7%

ROCE(HY)

Highest at 8.43%

NET SALES(Q)

At Rs 7,697.72 cr has Grown at 40.29%

DPS(Y)

Highest at Rs 1.40

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 11,866.62 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.31 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.97 times

-1What is not working for the Company

NON-OPERATING INCOME(Q)

is 42.18 % of Profit Before Tax (PBT

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Here's what is working for BHEL

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 293.56 cr has Grown at 137.67%

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 376.71 cr has Grown at 182.7%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 5,837.38 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)

Net Sales - Quarterly

At Rs 7,697.72 cr has Grown at 40.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 11,866.62 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.31 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

Debtors Turnover Ratio- Half Yearly

Highest at 4.97 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Dividend per Share (DPS) - Annually

Highest at Rs 1.40

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Here's what is not working for BHEL

Non Operating Income - Quarterly

is 42.18 % 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