BSE:500103

Stock Analysis Report

Bharat Heavy Electricals

Executive Summary

Bharat Heavy Electricals Limited operates as an engineering and manufacturing enterprise in the energy and infrastructure sectors, and a power equipment manufacturer worldwide.

Snowflake

Proven track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Bharat Heavy Electricals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500103 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.09%

500103

-1.1%

IN Electrical

-1.5%

IN Market


1 Year Return

-18.8%

500103

-23.2%

IN Electrical

3.8%

IN Market

Return vs Industry: 500103 exceeded the Indian Electrical industry which returned -23.2% over the past year.

Return vs Market: 500103 underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

500103IndustryMarket
7 Day-0.09%-1.1%-1.5%
30 Day29.4%8.7%4.1%
90 Day5.5%9.5%7.4%
1 Year-15.7%-18.8%-21.2%-23.2%5.9%3.8%
3 Year-35.1%-39.5%11.0%7.3%34.7%27.6%
5 Year-65.3%-67.9%-7.2%-12.1%37.0%31.1%

Price Volatility Vs. Market

How volatile is Bharat Heavy Electricals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bharat Heavy Electricals undervalued compared to its fair value and its price relative to the market?

23.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500103 (₹54.15) is trading above our estimate of fair value (₹37.68)

Significantly Below Fair Value: 500103 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500103 is poor value based on its PE Ratio (23.9x) compared to the Electrical industry average (14.8x).

PE vs Market: 500103 is poor value based on its PE Ratio (23.9x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: 500103 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 500103 is good value based on its PB Ratio (0.6x) compared to the IN Electrical industry average (0.8x).


Next Steps

Future Growth

How is Bharat Heavy Electricals forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500103's forecast earnings growth (24.4% per year) is above the savings rate (7.6%).

Earnings vs Market: 500103's earnings (24.4% per year) are forecast to grow faster than the Indian market (19% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500103's revenue (8.2% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: 500103's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500103's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Bharat Heavy Electricals performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500103 has high quality earnings.

Growing Profit Margin: 500103's current net profit margins (2.8%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: 500103's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: 500103's earnings growth over the past year (8.4%) exceeds its 5-year average (7.4% per year).

Earnings vs Industry: 500103 earnings growth over the past year (8.4%) underperformed the Electrical industry 16.9%.


Return on Equity

High ROE: 500103's Return on Equity (2.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bharat Heavy Electricals's financial position?


Financial Position Analysis

Short Term Liabilities: 500103's short term assets (₹365.9B) exceeds its short term liabilities (₹241.9B)

Long Term Liabilities: 500103's short term assets (365.9B) exceeds its long term liabilities (95.1B)


Debt to Equity History and Analysis

Debt Level: 500103's debt to equity ratio (15.7%) is considered satisfactory

Reducing Debt: 500103's debt to equity ratio has increased from 9.2% to 15.7% over the past 5 years.

Debt Coverage: 500103's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 500103 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500103 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500103's debt is covered by short term assets (assets are 7.7x debt).


Next Steps

Dividend

What is Bharat Heavy Electricals's current dividend yield, its reliability and sustainability?

3.69%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%0.6%markettop25%2.4%industryaverage2.5%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: 500103's dividend (3.69%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: 500103's dividend (3.69%) is in the top 25% of dividend payers in the Indian market (2.42%)


Stability and Growth of Payments

Stable Dividend: 500103's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500103's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.1%), 500103's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500103's dividends in 3 years are forecast to be covered by earnings (53.4% payout ratio).


Next Steps

Management

What is the CEO of Bharat Heavy Electricals's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Nalin Shinghal (55yo)

0.3yrs

Tenure

0

Dr. Nalin Shinghal has been the Chairman & Managing Director at Bharat Heavy Electricals Limited since July 08, 2019. He holds a B. Tech degree in Electrical Engineering from IIT-Delhi and a PGD in managem ...


Management Age and Tenure

0.9yrs

Average Tenure

57.5yo

Average Age

Experienced Management: 500103's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

58yo

Average Age

Experienced Board: 500103's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • A. Jain

    GM & Head of TBSG

    • Tenure: 0yrs
  • Subodh Gupta (64yo)

    Director of Finance & Director

    • Tenure: 1.6yrs
    • Compensation: ₹5.59m
  • Kamalesh Das (57yo)

    Director of Engineering

    • Tenure: 0.7yrs
    • Compensation: ₹14.07m
  • Anil Kapoor

    Director of HR & Director

    • Tenure: 0.08yrs
  • Alok Ranjan

    Chief Vigilance Officer

    • Tenure: 2.7yrs
  • S. Balakrishnan (58yo)

    Director of Industrial Systems & Products and Whole Time Director

    • Tenure: 1.4yrs
    • Compensation: ₹5.74m
  • Manoj Varma (58yo)

    Director of Power & Director

    • Tenure: 0.9yrs
    • Compensation: ₹7.71m
  • S.B. Narang

    GM & Head of Corp. Finance

    • Tenure: 0yrs
  • Rajeev Kalra (49yo)

    Compliance Officer & Company Secretary

    • Tenure: 0.9yrs
    • Compensation: ₹6.18m
  • Nalin Shinghal (55yo)

    Chairman & MD

    • Tenure: 0.3yrs

Board Members

  • Ranjit Rae (62yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹295.00k
  • Rajesh Sharma (49yo)

    Independent Director

    • Tenure: 0.8yrs
  • Subodh Gupta (64yo)

    Director of Finance & Director

    • Tenure: 1.6yrs
    • Compensation: ₹5.59m
  • Kamalesh Das (57yo)

    Director of Engineering

    • Tenure: 0.7yrs
    • Compensation: ₹14.07m
  • Ramachandran Swaminathan (63yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹380.00k
  • Anil Kapoor

    Director of HR & Director

    • Tenure: 0.08yrs
  • S. Balakrishnan (58yo)

    Director of Industrial Systems & Products and Whole Time Director

    • Tenure: 1.4yrs
    • Compensation: ₹5.74m
  • Manoj Varma (58yo)

    Director of Power & Director

    • Tenure: 0.9yrs
    • Compensation: ₹7.71m
  • Desh Goel (63yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹305.00k
  • Nalin Shinghal (55yo)

    Chairman & MD

    • Tenure: 0.3yrs

Company Information

Bharat Heavy Electricals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bharat Heavy Electricals Limited
  • Ticker: 500103
  • Exchange: BSE
  • Founded: 1964
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: ₹187.335b
  • Shares outstanding: 3.48b
  • Website: https://www.bhel.com

Number of Employees


Location

  • Bharat Heavy Electricals Limited
  • BHEL House
  • Siri Fort
  • New Delhi
  • Delhi
  • 110049
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500103BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1999
BHELNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1999

Biography

Bharat Heavy Electricals Limited operates as an engineering and manufacturing enterprise in the energy and infrastructure sectors, and a power equipment manufacturer worldwide. The company operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 12:33
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.