Bharat Electronics Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹2,20,902 crore, PE ratio of 52.1, and return on equity of 26.3% These figures reflect the company’s financial health and current market valuation.
Content:
- Bharat Electronics Ltd Overview
- Bharat Electronics Financial Results
- Bharat Electronics Financial Analysis
- Bharat Electronics Company Metrics
- Bharat Electronics Stock Performance
- Bharat Electronics Peer Comparison
- Bharat Electronics Shareholding Pattern
- Bharat Electronics History
- How To Invest In Bharat Electronics Ltd Share?
- Bharat Electronics Limited Fundamental Analysis – FAQs
Bharat Electronics Ltd Overview
Bharat Electronics Ltd (BEL) is a leading Indian defense electronics company, specializing in high-tech products and systems for defense and aerospace. It is renowned for its innovation, quality, and role in advancing India’s defense capabilities and technological infrastructure.
The company has a market capitalization of ₹2,20,902 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 11.2% below its 52-week high and 139% above its 52-week low.
Bharat Electronics Financial Results
Bharat Electronics Ltd financial results for FY24 show solid growth, with sales increasing to ₹20,268 crores and net profit rising to ₹3,985 crores, compared to ₹15,368 crores and ₹2,400 crores in FY22.
- Revenue Trend: Bharat Electronics’ sales increased to ₹20,268 crores in FY24 from ₹17,734 crores in FY23, reflecting steady growth in revenue.
- Equity and Liabilities: Expenses rose to ₹15,222 crores in FY24 from ₹13,649 crores in FY23, indicating a controlled increase in operational costs.
- Profitability: The operating profit margin (OPM) improved to 25% in FY24 from 23% in FY23, showcasing enhanced profitability.
- Earnings Per Share (EPS): Bharat Electronics’ EPS increased to ₹5.45 in FY24 from ₹4.09 in FY23, indicating higher returns for shareholders.
- Return on Net Worth (RoNW): The rise in net profit and EPS suggests a strong return on net worth, driven by improved financial performance.
- Financial Position: Bharat Electronics’ financial stability strengthened in FY24 with higher EBITDA, despite slightly increased interest and depreciation expenses.
Bharat Electronics Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 20,268 | 17,734 | 15,368 |
| Expenses | 15,222 | 13,649 | 12,027 |
| Operating Profit | 5,046 | 4,086 | 3,341 |
| OPM % | 25 | 23 | 22 |
| Other Income | 670.14 | 280.8 | 231.54 |
| EBITDA | 5,717 | 4,367 | 3,572 |
| Interest | 7.14 | 14.95 | 5.05 |
| Depreciation | 443.2 | 428.82 | 401.13 |
| Profit Before Tax | 5,266 | 3,923 | 3,166 |
| Tax % | 25.12 | 25.05 | 25.64 |
| Net Profit | 3,985 | 2,986 | 2,400 |
| EPS | 5.45 | 4.09 | 9.85 |
| Dividend Payout % | 40.37 | 44.01 | 45.69 |
*All values in ₹ Crores
Bharat Electronics Company Metrics
Bharat Electronics Ltd’s stock performance highlights its significant market presence and financial strength. With a robust market cap and impressive profitability metrics, the company shows a strong financial position and substantial returns for investors, despite recent market fluctuations.
- Market Cap: With a market capitalization of ₹2,20,902 crore, Bharat Electronics is a major player in the defense electronics sector.
- Book Value: The book value per share stands at ₹22.3, indicating the company’s underlying asset value per share. This measure provides insight into the company’s financial health and valuation relative to its market price.
- Face Value: The face value of Bharat Electronics’ shares is ₹1.00, representing the nominal value of the stock. This low face value compared to market price illustrates significant appreciation and value creation for shareholders.
- Turnover: The asset turnover ratio of 0.54 indicates the efficiency with which Bharat Electronics uses its assets to generate revenue.
- PE Ratio: The Price-to-Earnings (PE) ratio of 52.1 suggests a high valuation relative to earnings. This high PE ratio may reflect strong future growth expectations and investor optimism about the company’s performance.
- Debt: With a minimal debt of ₹62.5 crore and a debt-to-equity ratio of 0.00, Bharat Electronics maintains a strong balance sheet. This low level of debt indicates a conservative approach to financing and financial stability.
- ROE: Return on Equity (ROE) at 26.3% signifies robust profitability and effective use of shareholders’ equity. This high ROE highlights the company’s ability to generate significant returns on invested capital.
- EBITDA Margin: The EBITDA margin of 34.7% reflects strong operational efficiency and profitability. This margin indicates effective cost management and substantial earnings before interest, taxes, depreciation, and amortization.
- Dividend Yield: With a dividend yield of 0.73%, Bharat Electronics offers a modest return on investment through dividends.
Bharat Electronics Stock Performance
The table shows impressive returns on investment for Bharat Electronics, with 56% over 5 years, 74% over 3 years, and a remarkable 129% over 1 year. These figures highlight substantial growth and high returns for investors over different time periods.
| Period | Return on Investment (%) |
| 5 Years | 56% |
| 3 Years | 74% |
| 1 Year | 129% |
Example:
If an investor had invested ₹1,00,000 five years ago, they would have seen a 56% return, resulting in ₹1,56,000.
Over three years, an investment of ₹1,00,000 would have grown to ₹1,74,000.
In the past year, the same ₹1,00,000 investment would have yielded ₹2,29,000.
Bharat Electronics Peer Comparison
Bharat Electronics, with a market cap of ₹214,724.46 crore, exhibits a robust ROCE of 34.61% and a PEG ratio of 3.16. Its 3-month return of 23.46% contrasts with a significant 1-year return of 125.06%, highlighting strong recent performance among its peers like, Data Pattern, DCX Systems, and Apollo Micro Sys.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3 mth return % | 1Yr return % |
| 1 | Bharat Electronics | 293.7 | 214724.46 | 3.16 | 23.46 | 125.06 |
| 2 | Data Pattern | 2923.5 | 16385.51 | 0.99 | -1.44 | 39.24 |
| 3 | DCX Systems | 330.75 | 3698.98 | 2.96 | 22.64 | |
| 4 | Apollo Micro Sys | 106.69 | 3267.84 | 39.15 | 3.68 | 93.45 |
Bharat Electronics Shareholding Pattern
The shareholding pattern of Bharat Electronics shows consistent promoter ownership at 51.14%. Foreign Institutional Investors (FIIs) hold 17.43%, slightly decreasing from previous quarters. Domestic Institutional Investors (DIIs) have a notable 20.62%, while retail and others hold 10.82%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 51.14 | 51.14 | 51.14 | 51.14 |
| FII | 17.43 | 17.56 | 17.77 | 17.19 |
| DII | 20.62 | 22.63 | 23.37 | 24.19 |
| Retail & others | 10.82 | 8.66 | 7.72 | 7.49 |
*All values in %
Bharat Electronics History
Bharat Electronics Limited (BEL) was established in 1954 under the Ministry of Defence to meet India’s defence electronics needs. Initially focused on defence, BEL has since evolved into a multi-product, multi-technology conglomerate, supporting the Indian armed forces with advanced systems.
BEL’s growth has paralleled advancements in defence technology in India. The company developed landmark systems like the Akash Air Defence Weapon System and the Coastal Surveillance System. Additionally, BEL’s innovations, like tamper-proof Electronic Voting Machines and ventilators during the COVID-19 pandemic, highlight its diversified capabilities.
To support India’s Make in India initiative, BEL focuses on in-house R&D, indigenization, and expanding its non-defence business. The company is also increasing its global presence, establishing offices in strategic locations like Oman, Vietnam, and New York.
How To Invest In Bharat Electronics Ltd Share?
Investing in Bharat Electronics Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Bharat Electronics Ltd shares and place your buy order
Bharat Electronics Limited Fundamental Analysis – FAQs
Bharat Electronics Ltd’s fundamental analysis reveals a market capitalization of ₹2,20,902 crore, a PE ratio of 52.1, a debt-to-equity ratio of 0.00, and a return on equity of 26.3%, indicating strong financial health and market valuation.
The market cap of Bharat Electronics Ltd as of August 12, 2024, is approximately ₹2,20,902 crore. This value reflects the company’s strong market position in the Indian aerospace and defence industry.
Bharat Electronics Limited (BEL) is a Navratna Public Sector Undertaking under India’s Ministry of Defence, established in 1954. It specializes in manufacturing advanced electronic products for defense and non-defense sectors, contributing to national security and technological innovation.
Bharat Electronics Limited (BEL) is owned by the Government of India. It operates under the Ministry of Defence and is a Navratna Public Sector Undertaking, with the government holding the majority stake in the company.
The main shareholders of Bharat Electronics Limited (BEL) are the Government of India, which holds the majority stake, followed by various institutional investors, mutual funds, and retail investors who own the remaining shares in the company.
Bharat Electronics Limited operates in the defense and aerospace industry, specializing in the design, development, and manufacturing of electronic equipment and systems for defense applications, including radars, missile systems, communication systems, and electronic warfare.
To invest in Bharat Electronics Ltd shares, open a brokerage account, complete KYC requirements, and place a buy order for the shares through your brokerage platform. Ensure to review market conditions and the company’s financial health before investing.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
