Bharat Electronics Limited Fundamental Analysis (BSE: BEL.BO)
Bharat Electronics Limited Fundamental Analysis (BSE: BEL.BO)
Bharat Electronics Limited (BSE: BEL.BO) shows strong financial fundamentals with a PE ratio of 49.20, profit margin of 21.37%, and ROE of 28.17%. The company generates $287.2B in annual revenue with strong year-over-year growth of 17.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.4/100 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 BEL.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBEL.BO demonstrates superior asset utilization.
Valuation Score
WeakBEL.BO trades at a premium to fair value.
Growth Score
ExcellentBEL.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBEL.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateBEL.BO maintains healthy but balanced margins.
Key Financial Metrics
Is BEL.BO Expensive or Cheap?
P/E Ratio
BEL.BO trades at 49.20 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BEL.BO's PEG of 4.26 indicates potential overvaluation.
Price to Book
The market values Bharat Electronics Limited at 12.59 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 36.05 times EBITDA. This signals the market has high growth expectations.
How Well Does BEL.BO Make Money?
Net Profit Margin
For every $100 in sales, Bharat Electronics Limited keeps $21.37 as profit after all expenses.
Operating Margin
Core operations generate 26.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.17 in profit for every $100 of shareholder equity.
ROA
Bharat Electronics Limited generates $13.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bharat Electronics Limited generates limited operating cash flow of $-8.89B, signaling weaker underlying cash strength.
Free Cash Flow
Bharat Electronics Limited generates weak or negative free cash flow of $-13.44B, restricting financial flexibility.
FCF Per Share
Each share generates $-1.84 in free cash annually.
FCF Yield
BEL.BO converts -0.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.003
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How BEL.BO Stacks Against Its Sector Peers
| Metric | BEL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.20 | 29.39 | Worse (Expensive) |
| ROE | 28.17% | 1109.00% | Weak |
| Net Margin | 21.37% | -25189.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 1.98 | 21.75 | Neutral |
| ROA | 13.78% | -1328226.00% (disorted) | Strong |
BEL.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 Electronics Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.29%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
191.77%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-77.18%
Industry Style: Cyclical, Value, Infrastructure
Declining