Bharat Dynamics Limited Fundamental Analysis (BSE: BDL.BO)
Bharat Dynamics Limited (BSE: BDL.BO) shows moderate financial fundamentals with a PE ratio of 95.70, profit margin of 18.83%, and ROE of 12.49%. The company generates $27.7B in annual revenue with strong year-over-year growth of 41.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BDL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakBDL.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateBDL.BO shows balanced valuation metrics.
Growth Score
ModerateBDL.BO shows steady but slowing expansion.
Financial Health Score
ExcellentBDL.BO maintains a strong and stable balance sheet.
Profitability Score
WeakBDL.BO struggles to sustain strong margins.
Key Financial Metrics
Is BDL.BO Expensive or Cheap?
P/E Ratio
BDL.BO trades at 95.70 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BDL.BO's PEG of -13.55 indicates potential undervaluation.
Price to Book
The market values Bharat Dynamics Limited at 11.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 79.22 times EBITDA. This signals the market has high growth expectations.
How Well Does BDL.BO Make Money?
Net Profit Margin
For every $100 in sales, Bharat Dynamics Limited keeps $18.83 as profit after all expenses.
Operating Margin
Core operations generate 9.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.49 in profit for every $100 of shareholder equity.
ROA
Bharat Dynamics Limited generates $3.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bharat Dynamics Limited generates limited operating cash flow of $-802.75M, signaling weaker underlying cash strength.
Free Cash Flow
Bharat Dynamics Limited generates weak or negative free cash flow of $-1.52B, restricting financial flexibility.
FCF Per Share
Each share generates $-4.14 in free cash annually.
FCF Yield
BDL.BO converts -0.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
95.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-13.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
18.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How BDL.BO Stacks Against Its Sector Peers
| Metric | BDL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 95.70 | 29.39 | Worse (Expensive) |
| ROE | 12.49% | 1109.00% | Weak |
| Net Margin | 18.83% | -25189.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 2.01 | 21.75 | Strong Liquidity |
| ROA | 3.65% | -1328226.00% (disorted) | Weak |
BDL.BO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bharat Dynamics Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.72%
Industry Style: Cyclical, Value, Infrastructure
GrowingEPS CAGR
2.74%
Industry Style: Cyclical, Value, Infrastructure
GrowingFCF CAGR
-7.42%
Industry Style: Cyclical, Value, Infrastructure
Declining