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Last Updated on: 03 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 500049 | NSE: BEL

Bharat Electronics Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 3, 2024, 10:18 pm

Market Cap 2,28,287 Cr.
Current Price 312
High / Low340/150
Stock P/E50.3
Book Value 24.2
Dividend Yield0.70 %
ROCE34.6 %
ROE26.3 %
Face Value 1.00
PEG Ratio3.33

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Bharat Electronics Ltd

Competitors of Bharat Electronics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
DCX Systems Ltd 3,767 Cr. 339452/23571.7 1020.00 %9.27 %8.08 % 2.00
Data Patterns (India) Ltd 14,101 Cr. 2,5213,655/1,75176.2 2410.26 %19.7 %14.3 % 2.00
Paras Defence and Space Technologies Ltd 4,387 Cr. 1,0891,593/60988.8 1220.00 %11.4 %7.96 % 10.0
Zen Technologies Ltd 16,310 Cr. 1,8061,999/68880.6 1730.06 %47.2 %33.0 % 1.00
Mishra Dhatu Nigam Ltd 6,898 Cr. 368548/30578.8 72.00.38 %9.44 %7.00 % 10.0
Industry Average58,956.73 Cr1,338.7366.70144.000.32%22.99%17.06%4.45

All Competitor Stocks of Bharat Electronics Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,6493,6783,7026,3403,1413,9624,1536,4793,5334,0094,1628,5644,244
Expenses1,5792,8142,8724,7622,6183,0933,2904,6472,8602,9953,0906,2773,295
Operating Profit708648291,5785228688631,8326731,0141,0722,287948
OPM %4%23%22%25%17%22%21%28%19%25%26%27%22%
Other Income4562606482745966140137167225204
Interest00041210212141
Depreciation97999810699109106114109108107119108
Profit before tax188267911,5315048318061,7827031,0411,1322,3901,043
Tax %27%26%26%25%29%26%25%23%25%25%25%25%25%
Net Profit246255961,1553666246141,3825397908601,797791
EPS in Rs0.030.850.821.580.500.850.841.890.741.081.182.461.08

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales6,2736,5187,0937,3548,65610,40112,16412,96814,10915,36817,73420,26820,979
Expenses5,6045,5935,9135,9616,8648,3619,25510,20910,89512,02413,64515,21715,657
Operating Profit6699251,1791,3931,7922,0392,9092,7593,2143,3444,0905,0515,322
OPM %11%14%17%19%21%20%24%21%23%22%23%25%25%
Other Income6224385075734201967399125232281670733
Interest7771018616810919127
Depreciation136150166192212272338372387401429443442
Profit before tax1,1471,2061,5131,7641,9831,9572,6282,4782,9423,1663,9235,2665,606
Tax %21%21%21%24%24%28%30%28%30%26%25%25%
Net Profit9119521,1971,3371,5231,4311,8871,8252,1002,4002,9863,9854,238
EPS in Rs1.151.201.511.692.071.962.582.502.873.284.085.455.80
Dividend Payout %20%20%20%31%33%34%44%37%46%46%44%40%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)4.50%25.74%11.70%13.91%-6.04%31.87%-3.29%15.07%14.29%24.42%33.46%
Change in YoY Net Profit Growth (%)0.00%21.23%-14.04%2.22%-19.95%37.91%-35.15%18.35%-0.78%10.13%9.04%

Bharat Electronics Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:11%
3 Years:13%
TTM:19%
Compounded Profit Growth
10 Years:15%
5 Years:16%
3 Years:24%
TTM:37%
Stock Price CAGR
10 Years:27%
5 Years:56%
3 Years:65%
1 Year:103%
Return on Equity
10 Years:20%
5 Years:22%
3 Years:23%
Last Year:26%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:36 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital808080240223244244244244244731731731
Reserves6,4077,1408,0379,0067,5127,7728,9689,82810,81612,04213,13115,59516,929
Borrowings1025286480348353616361
Other Liabilities8,3677,7607,5879,3309,80010,86811,57514,27118,43021,57421,56723,13622,085
Total Liabilities14,85514,98015,72918,60517,60018,96520,82124,35129,49233,91235,49039,52439,806
Fixed Assets6006951,0731,2321,5011,8392,2982,7132,6522,6752,9633,0353,473
CWIP3284581404307439408498288831,006855894668
Investments0004624919379641,1101,3061,572650682728
Other Assets13,92613,82814,51616,48114,86515,24816,71019,70024,65128,65931,02234,91334,937
Total Assets14,85514,98015,72918,60517,60018,96520,82124,35129,49233,91235,49039,52439,806

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1,539-5691,4342,260-61-6871,5142,5705,0934,2071,1994,659
Cash from Investing Activity +1,753759-839-1,4703,115-6-896-649-2,595-4,8722,708-5,924
Cash from Financing Activity +-158-213-209-318-2,857-1,202-663-1,061-1,076-1,078-1,262-1,475
Net Cash Flow56-23386472197-1,895-458611,422-1,7422,645-2,739

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow668.00925.00-24.00-27.00-63.00-78.00-32.00-6.000.00-50.00-57.00-58.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days196233196185184176161189170145145133
Inventory Days306325321401407305275204233230240257
Days Payable1101201111121089189126155139124128
Cash Conversion Cycle391438406473483390347267248237261262
Working Capital Days16895310631261341194742818
ROCE %18%18%20%20%23%25%30%26%28%27%30%35%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters51.14%51.14%51.14%51.14%51.14%51.14%51.14%51.14%51.14%51.14%51.14%51.14%
FIIs17.21%16.77%15.99%17.36%17.34%16.42%17.35%17.19%17.77%17.56%17.43%17.27%
DIIs26.77%26.71%27.77%25.63%25.04%25.50%24.84%24.19%23.37%22.63%20.62%20.22%
Public4.89%5.38%5.11%5.88%6.47%6.95%6.68%7.49%7.72%8.66%10.82%11.37%
No. of Shareholders3,67,5044,31,0344,37,0975,79,8077,07,0987,80,2117,67,8209,74,78210,98,22813,64,87325,18,66327,72,002

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India CPSE ETF212,586,94414.366718.81212,586,9442024-12-010%
Canara Robeco Emerging Equities34,965,9324.491105.1212,586,9442024-12-01-83.55%
Kotak Equity Opportunities Fund - Regular Plan28,000,0003.53884.94212,586,9442024-12-01-86.83%
Kotak Equity Arbitrage Fund - Regular Plan17,618,7001.08556.84212,586,9442024-12-01-91.71%
Motilal Oswal Nifty India Defence Index Fund14,320,87619.42452.61212,586,9442024-12-01-93.26%
Canara Robeco Flexi Cap Fund11,950,0002.82377.68212,586,9442024-12-01-94.38%
Canara Robeco Bluechip Equity Fund10,500,0002.28331.85212,586,9442024-12-01-95.06%
Canara Robeco Small Cap Fund10,345,9872.72326.98212,586,9442024-12-01-95.13%
Nippon India Growth Fund10,000,0000.96316.05212,586,9442024-12-01-95.3%
Franklin India Flexi Cap Fund9,365,0821.7295.98212,586,9442024-12-01-95.59%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)5.454.099.858.627.49
Diluted EPS (Rs.)5.454.099.858.627.49
Cash EPS (Rs.)6.004.6111.3110.088.88
Book Value[Excl.RevalReserv]/Share (Rs.)22.3618.9950.4945.4541.39
Book Value[Incl.RevalReserv]/Share (Rs.)22.3618.9950.4945.4541.39
Revenue From Operations / Share (Rs.)27.7324.2663.0757.9053.22
PBDIT / Share (Rs.)7.825.9714.6613.6911.71
PBIT / Share (Rs.)7.215.3913.0212.1010.19
PBT / Share (Rs.)7.205.3712.9912.0710.17
Net Profit / Share (Rs.)5.394.029.668.497.36
NP After MI And SOA / Share (Rs.)5.454.089.858.617.49
PBDIT Margin (%)28.2024.6223.2423.6422.00
PBIT Margin (%)26.0122.2020.6320.8919.13
PBT Margin (%)25.9822.1220.6020.8519.11
Net Profit Margin (%)19.4516.5715.3214.6613.82
NP After MI And SOA Margin (%)19.6516.8215.6014.8714.06
Return on Networth / Equity (%)24.4021.5319.5218.9718.10
Return on Capital Employeed (%)30.1326.3822.1323.2821.61
Return On Assets (%)10.088.407.077.117.49
Asset Turnover Ratio (%)0.540.510.480.520.57
Current Ratio (X)1.551.461.391.411.46
Quick Ratio (X)1.211.151.111.111.15
Inventory Turnover Ratio (X)1.511.561.541.501.40
Dividend Payout Ratio (NP) (%)36.6941.6342.6548.7541.41
Dividend Payout Ratio (CP) (%)33.0136.4036.5441.1634.40
Earning Retention Ratio (%)63.3158.3757.3551.2558.59
Cash Earning Retention Ratio (%)66.9963.6063.4658.8465.60
Interest Coverage Ratio (X)800.64292.09707.41523.62792.74
Interest Coverage Ratio (Post Tax) (X)553.26197.68467.23325.86498.95
Enterprise Value (Cr.)136217.2563213.2743828.3125423.1016469.79
EV / Net Operating Revenue (X)6.723.562.851.801.27
EV / EBITDA (X)23.8314.4812.277.625.77
MarketCap / Net Operating Revenue (X)7.274.023.342.161.40
Retention Ratios (%)63.3058.3657.3451.2458.58
Price / BV (X)9.025.144.182.761.80
Price / Net Operating Revenue (X)7.274.023.342.161.40
EarningsYield0.020.040.040.060.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bharat Electronics Ltd as of December 3, 2024 is: 322.38

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 3, 2024, Bharat Electronics Ltd is Undervalued by 3.33% compared to the current share price 312.00

Intrinsic Value of Bharat Electronics Ltd as of December 3, 2024 is: 371.09

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 3, 2024, Bharat Electronics Ltd is Undervalued by 18.94% compared to the current share price 312.00

Last 5 Year EPS CAGR: 15.11%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 25.00%, which is a positive sign.
  2. The company has higher reserves (10,244.85 cr) compared to borrowings (37.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (11.85 cr) and profit (2.15 cr) over the years.
  1. The stock has a high average Working Capital Days of 58.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 350.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Bharat Electronics Ltd:
    1. Net Profit Margin: 19.45%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 30.13% (Industry Average ROCE: 22.99%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 24.4% (Industry Average ROE: 17.06%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 553.26
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.21
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 50.3 (Industry average Stock P/E: 66.7)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Bharat Electronics Ltd. is a Public Limited Listed company incorporated on 21/04/1954 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L32309KA1954GOI000787 and registration number is 000787. Currently Company is involved in the business activities of Manufacture of communication equipment. Company’s Total Operating Revenue is Rs. 15313.76 Cr. and Equity Capital is Rs. 243.66 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Aerospace & DefenseOuter Ring Road, Bengaluru Karnataka 560045secretary@bel.co.in
http://www.bel-india.in
Management
NamePosition Held
Mr. Bhanu Prakash SrivastavaDirector - R & D
Mr. Manoj JainChairman & Managing Director
Mr. S Damodar BhattadDirector - Finance & CFO
Mr. N VikramanDirector - Human Resources
Mr. K V Suresh KumarDirector - Marketing
Mr. T NatarajanPart Time Official Director
Dr. Binoy Kumar DasPart Time Official Director
Dr. P V ParthasarathiNon Official PartTime (Ind.) Director
Mr. Mansukhbhai S KhachariyaNon Official PartTime (Ind.) Director
Dr. N SanthoshkumarNon Official PartTime (Ind.) Director
Mr. Prafulla Kumar ChoudhuryNon Official PartTime (Ind.) Director
Dr. Shivnath YadavNon Official PartTime (Ind.) Director
Mr. Gokulan BangakandyNon Official PartTime (Ind.) Director
Mrs. Shyama SinghNon Official PartTime (Ind.) Director

FAQ

What is the latest intrinsic value of Bharat Electronics Ltd?

The latest intrinsic value of Bharat Electronics Ltd as on 03 December 2024 is ₹322.38, which is 3.33% higher than the current market price of ₹312.00. The stock has a market capitalization of 2,28,287 Cr. and recorded a high/low of ₹340/150 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹16,929 Cr and total liabilities of ₹39,806 Cr.

What is the Market Cap of Bharat Electronics Ltd?

The Market Cap of Bharat Electronics Ltd is 2,28,287 Cr..

What is the current Stock Price of Bharat Electronics Ltd as on 03 December 2024?

The current stock price of Bharat Electronics Ltd as on 03 December 2024 is 312.

What is the High / Low of Bharat Electronics Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Bharat Electronics Ltd stocks is 340/150.

What is the Stock P/E of Bharat Electronics Ltd?

The Stock P/E of Bharat Electronics Ltd is 50.3.

What is the Book Value of Bharat Electronics Ltd?

The Book Value of Bharat Electronics Ltd is 24.2.

What is the Dividend Yield of Bharat Electronics Ltd?

The Dividend Yield of Bharat Electronics Ltd is 0.70 %.

What is the ROCE of Bharat Electronics Ltd?

The ROCE of Bharat Electronics Ltd is 34.6 %.

What is the ROE of Bharat Electronics Ltd?

The ROE of Bharat Electronics Ltd is 26.3 %.

What is the Face Value of Bharat Electronics Ltd?

The Face Value of Bharat Electronics Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Bharat Electronics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE