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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500103 | NSE: BHEL

Fundamental Analysis of Bharat Heavy Electricals Ltd

Basic Stock Data

Last Updated: May 13, 2024, 2:52 pm

Market Cap 98,611 Cr.
Current Price 283
High / Low318/77.2
Stock P/E
Book Value 74.9
Dividend Yield0.14 %
ROCE3.33 %
ROE1.70 %
Face Value 2.00
PEG Ratio0.00

Competitors of Bharat Heavy Electricals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Chandni Machines Ltd 15.6 Cr. 48.366.3/10.09.01 27.30.00 %28.9 %21.8 % 10.0
Cranex Ltd 54.6 Cr. 91.0127/24.258.1 16.40.00 %7.22 %6.07 % 10.0
Triveni Turbine Ltd 18,149 Cr. 571654/31267.4 30.20.23 %41.7 %31.3 % 1.00
Action Construction Equipment Ltd 19,089 Cr. 1,6031,695/39869.0 87.70.06 %26.2 %18.8 % 2.00
Praj Industries Ltd 9,576 Cr. 521650/36634.3 60.50.86 %31.0 %23.7 % 2.00
Industry Average9,376.84 Cr566.8647.5644.420.23%27.00%20.33%5.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4,4517,1702,9015,1125,1368,0624,6725,2035,2638,2275,0035,1255,504
Expenses4,6328,4393,3775,1425,0476,9104,8425,4465,1197,2415,3685,5135,567
Operating Profit-180-1,268-476-30891,152-170-244144986-364-388-63
OPM %-4%-18%-16%-1%2%14%-4%-5%3%12%-7%-8%-1%
Other Income9984749610413184226110125130192118
Interest86798490869698123139161168180190
Depreciation11312711143748667596273606061
Profit before tax-280-1,390-597-67331,102-251-19953877-462-436-195
Tax %22%25%25%31%18%17%25%106%20%30%26%45%24%
Net Profit-218-1,036-448-4727912-1881242611-344-238-149
EPS in Rs-0.62-2.97-1.29-0.130.082.62-0.540.030.121.75-0.99-0.68-0.43

Last Updated: May 11, 2024, 11:35 am

Quarterly Chart

Bharat Heavy Electricals Ltd (BHEL) Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales48,34048,90339,56131,32325,50528,46528,82730,44121,46317,30921,21123,36523,619
Expenses38,39339,42034,98229,18326,86227,37027,17428,40921,59620,35720,38322,55723,240
Operating Profit9,9479,4834,5792,141-1,3571,0951,6532,032-133-3,049828807379
OPM %21%19%12%7%-5%4%6%7%-1%-18%4%3%2%
Other Income1,2761,1321,6171,2211,492753679662590393405544557
Interest5312813392360413330378613467448612649
Depreciation8039579851,082937850787476503473314260255
Profit before tax10,3679,5315,0782,187-1,1615861,2151,840-659-3,59647047932
Tax %32%30%31%34%39%22%64%46%-123%25%5%0%
Net Profit7,0876,6933,5021,450-7064554381,002-1,468-2,70044547771
EPS in Rs19.3018.239.543.96-1.921.251.202.89-4.21-7.751.281.370.20
Dividend Payout %22%20%20%20%-14%85%151%69%0%0%31%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-5.56%-47.68%-58.60%-148.69%164.45%-3.74%128.77%-246.51%-83.92%116.48%7.19%
Change in YoY Net Profit Growth (%)0.00%-42.12%-10.92%-90.09%313.14%-168.18%132.50%-375.27%162.58%200.41%-109.29%

Growth

Compounded Sales Growth
10 Years:-7%
5 Years:-4%
3 Years:3%
TTM:3%
Compounded Profit Growth
10 Years:-24%
5 Years:2%
3 Years:32%
TTM:-115%
Stock Price CAGR
10 Years:9%
5 Years:34%
3 Years:76%
1 Year:237%
Return on Equity
10 Years:1%
5 Years:-2%
3 Years:-2%
Last Year:2%

Last Updated: April 17, 2024, 3:35 am

Bharat Heavy Electricals Ltd (BHEL) Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital490490490490490490734696696696696696696
Reserves24,91430,05932,68133,71731,82531,89931,60130,20827,96425,28725,81026,13225,386
Borrowings4322,6984,6931,8892111561102,5985,0804,9514,8305,4549,040
Other Liabilities41,66438,57237,46834,88733,05129,15331,49530,98726,55025,02525,65427,83225,796
Total Liabilities67,49971,81875,33170,98365,57761,69863,94064,49060,29155,96056,99160,11460,919
Fixed Assets4,5194,6674,7294,2303,9693,6013,0732,9702,8172,4912,3982,4762,481
CWIP1,7632,4672,9312,614318168203235314420431354323
Investments6666796757429152162185205235239
Other Assets61,21164,67967,66564,13460,49457,17160,23561,13256,99852,86453,95657,04857,877
Total Assets67,49971,81875,33170,98365,57761,69863,94064,49060,29155,96056,99160,11460,919

Reserves and Borrowings Chart

Bharat Heavy Electricals Ltd (BHEL) Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -7011,7594,512821374560989-3,860-2,892560660-742
Cash from Investing Activity -582-1,113-86865023-5659611,9191,877-42-1,1181,480
Cash from Financing Activity -1,690472523-3,543-122-468-667-321,622-394-32989
Net Cash Flow-2,9721,1184,167-2,071275-4731,283-1,973608123-787828

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-423.007.000.001.00-212.00-155.00-109.000.00-138.00-7.00824.00802.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days200219260309321283178142121855249
Inventory Days210186195270272200191218321333274261
Days Payable159152174239240225301297300281291345
Cash Conversion Cycle252253281340353258686314213735-35
Working Capital Days1021261581932091621211301571468498
ROCE %45%33%15%6%-2%3%5%7%-0%-10%3%3%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters63.17%63.17%63.17%63.17%63.17%63.17%63.17%63.17%63.17%63.17%63.17%63.17%
FIIs4.47%4.67%4.31%3.86%4.00%4.22%4.81%8.48%8.58%7.77%7.23%7.04%
DIIs12.49%12.39%13.73%13.80%12.66%12.59%14.45%14.71%15.50%16.36%15.99%17.58%
Public19.87%19.76%18.79%19.17%20.17%20.02%17.57%13.63%12.76%12.71%13.62%12.23%
No. of Shareholders9,86,75211,46,93711,38,65412,04,72912,81,74312,87,79811,92,23210,27,95810,16,93610,12,61712,27,65812,65,436

Shareholding Pattern Chart

No. of Shareholders

Bharat Heavy Electricals Ltd (BHEL) Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund334002451.48646.46
Quant ELSS Tax Saver Fund130000003.92251.62
Kotak Equity Arbitrage Fund - Regular Plan104685000.59202.62
SBI Arbitrage Opportunities Fund90562500.69175.28
Edelweiss Arbitrage Fund81322501.97157.4
Nippon India Vision Fund80000003.82154.84
Invesco India Arbitrage Fund78750001.28152.42
Quant Mid Cap Fund78400003.59151.74
Nippon India Focused Equity Fund75011631.86145.19
ICICI Prudential Equity - Arbitrage Fund62422500.76120.82

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)1.371.28-7.75-4.212.76
Diluted EPS (Rs.)1.371.28-7.75-4.212.76
Cash EPS (Rs.)1.962.03-6.52-2.854.78
Book Value[Excl.RevalReserv]/Share (Rs.)77.0576.1274.5982.2888.73
Book Value[Incl.RevalReserv]/Share (Rs.)77.0576.1274.5982.2888.73
Revenue From Operations / Share (Rs.)67.1060.9249.7161.6487.42
PBDIT / Share (Rs.)3.463.13-8.020.938.01
PBIT / Share (Rs.)2.712.23-9.38-0.506.64
PBT / Share (Rs.)1.221.21-10.45-1.975.82
Net Profit / Share (Rs.)1.211.13-7.88-4.293.41
NP After MI And SOA / Share (Rs.)1.371.28-7.75-4.212.89
PBDIT Margin (%)5.155.13-16.131.529.16
PBIT Margin (%)4.043.65-18.86-0.827.60
PBT Margin (%)1.811.98-21.03-3.196.65
Net Profit Margin (%)1.801.85-15.85-6.963.90
NP After MI And SOA Margin (%)2.042.10-15.58-6.833.30
Return on Networth / Equity (%)1.771.68-10.38-5.113.25
Return on Capital Employeed (%)2.622.22-9.36-0.475.65
Return On Assets (%)0.800.79-4.88-2.451.57
Total Debt / Equity (X)0.200.170.180.170.08
Asset Turnover Ratio (%)0.400.370.290.340.47
Current Ratio (X)1.291.301.391.451.66
Quick Ratio (X)0.990.991.041.051.33
Inventory Turnover Ratio (X)0.940.771.051.452.19
Dividend Payout Ratio (NP) (%)29.170.000.000.0027.71
Dividend Payout Ratio (CP) (%)18.870.000.000.0018.81
Earning Retention Ratio (%)70.830.000.000.0072.29
Cash Earning Retention Ratio (%)81.130.000.000.0081.19
Interest Coverage Ratio (X)2.313.06-7.470.649.67
Interest Coverage Ratio (Post Tax) (X)1.812.11-6.34-1.945.12
Enterprise Value (Cr.)23162.0414775.2315111.165762.9221110.30
EV / Net Operating Revenue (X)0.990.690.870.260.69
EV / EBITDA (X)19.2213.55-5.4117.637.57
MarketCap / Net Operating Revenue (X)1.050.810.980.330.85
Retention Ratios (%)70.820.000.000.0072.28
Price / BV (X)0.910.640.650.250.84
Price / Net Operating Revenue (X)1.050.810.980.330.85
EarningsYield0.010.02-0.15-0.200.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹19.13

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.

Overvalued: 93.24% compared to the current price ₹283

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: ₹26.24

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 90.73% compared to the current price ₹283

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: 37.19%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (29,037.15 cr) compared to borrowings (3,241.69 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (29.38 cr) and profit (52.62 cr) over the years.
  1. The stock has a low average ROCE of 9.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 140.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 178.92, 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 Heavy Electricals Ltd:
    1. Net Profit Margin: 1.80%
      • 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: 2.62% (Industry Average ROCE: 45.31%)
      • 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%: 1.77% (Industry Average ROE: 13.79%)
      • 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): 1.81
      • 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: 0.99
      • 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: (Industry average Stock P/E: 20.74)
      • 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: 0.20
      • 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

Bharat Heavy Electricals Ltd. is a Public Limited Listed company incorporated on 13/11/1964 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1964GOI004281 and registration number is 004281. Currently Company is involved in the business activities of Manufacture of steam generators, except central heating hot water boilers. Company’s Total Operating Revenue is Rs. 21211.09 Cr. and Equity Capital is Rs. 696.41 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - HeavyBHEL House, Siri Fort, New Delhi Delhi 110049shareholderquery@bhel.in
http://www.bhel.com
Management
NamePosition Held
Dr. Nalin ShinghalChairman & Managing Director
Mr. Jai Prakash SrivastavaDirector & CFO
Ms. Renuka GeraDirector
Mr. Upinder Singh MatharuDirector - Power
Mr. Krishna Kumar ThakurDirector - Human Resources
Mr. Vijay MittalPart Time Official Director
Ms. Arti BhatnagarPart Time Official Director
Dr. Lekhasri SamantsingharIndependent Director
Mr. Ramesh Patlya MawaskarIndependent Director
Dr. K SivaprasadIndependent Director

FAQ

What is the latest fair value of Bharat Heavy Electricals Ltd?

The latest fair value of Bharat Heavy Electricals Ltd is ₹19.13.

What is the Market Cap of Bharat Heavy Electricals Ltd?

The Market Cap of Bharat Heavy Electricals Ltd is 98,611 Cr..

What is the current Stock Price of Bharat Heavy Electricals Ltd as on 19 May 2024?

The current stock price of Bharat Heavy Electricals Ltd as on 19 May 2024 is 283.

What is the High / Low of Bharat Heavy Electricals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bharat Heavy Electricals Ltd stocks is ₹318/77.2.

What is the Stock P/E of Bharat Heavy Electricals Ltd?

The Stock P/E of Bharat Heavy Electricals Ltd is .

What is the Book Value of Bharat Heavy Electricals Ltd?

The Book Value of Bharat Heavy Electricals Ltd is 74.9.

What is the Dividend Yield of Bharat Heavy Electricals Ltd?

The Dividend Yield of Bharat Heavy Electricals Ltd is 0.14 %.

What is the ROCE of Bharat Heavy Electricals Ltd?

The ROCE of Bharat Heavy Electricals Ltd is 3.33 %.

What is the ROE of Bharat Heavy Electricals Ltd?

The ROE of Bharat Heavy Electricals Ltd is 1.70 %.

What is the Face Value of Bharat Heavy Electricals Ltd?

The Face Value of Bharat Heavy Electricals Ltd is 2.00.

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 Heavy Electricals 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