Loading...

Bharat Electronics

NSEI:BEL
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BEL
NSEI
₹215B
Market Cap
  1. Home
  2. IN
  3. Capital Goods
Company description

Bharat Electronics Limited, together with its subsidiaries, designs, manufactures, supplies, and exports electronic equipment and systems for the defense and civilian markets in India and internationally. The last earnings update was 237 days ago. More info.


Add to Portfolio Compare Print
BEL Share Price and Events
7 Day Returns
-6.1%
NSEI:BEL
-5%
IN Aerospace & Defense
-1.9%
IN Market
1 Year Returns
-33.4%
NSEI:BEL
-37%
IN Aerospace & Defense
-2.8%
IN Market
BEL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bharat Electronics (BEL) -6.1% -3.7% 6.8% -33.4% -19.8% 141%
IN Aerospace & Defense -5% -3.1% -2.1% -37% -13.3% 15.8%
IN Market -1.9% 1.2% 5.1% -2.8% 38.3% 71%
1 Year Return vs Industry and Market
  • BEL outperformed the Aerospace & Defense industry which returned -37% over the past year.
  • BEL underperformed the Market in India which returned -2.8% over the past year.
Price Volatility
BEL
Industry
5yr Volatility vs Market

BEL Value

 Is Bharat Electronics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bharat Electronics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bharat Electronics.

NSEI:BEL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 15.7%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:BEL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.916 (1 + (1- 35%) (0.37%))
0.945
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.945 * 8.6%)
15.68%

Discounted Cash Flow Calculation for NSEI:BEL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Bharat Electronics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:BEL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 15.68%)
2019 10,523.00 Analyst x4 9,096.87
2020 13,321.83 Analyst x6 9,955.63
2021 12,914.20 Analyst x5 8,343.05
2022 12,925.61 Est @ 0.09% 7,218.73
2023 13,226.37 Est @ 2.33% 6,385.61
2024 13,741.38 Est @ 3.89% 5,735.15
2025 14,427.16 Est @ 4.99% 5,205.32
2026 15,257.94 Est @ 5.76% 4,758.99
2027 16,218.57 Est @ 6.3% 4,373.05
2028 17,300.70 Est @ 6.67% 4,032.62
Present value of next 10 years cash flows ₹65,105.02
NSEI:BEL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹17,300.70 × (1 + 7.55%) ÷ (15.68% – 7.55%)
₹228,947.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹228,947.17 ÷ (1 + 15.68%)10
₹53,365.32
NSEI:BEL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹65,105.02 + ₹53,365.32
₹118,470.33
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹118,470.33 / 2,436.59
₹48.62
NSEI:BEL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:BEL represents 0.99775x of BSE:500049
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99775x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 48.62 x 0.99775
₹48.51
Value per share (INR) From above. ₹48.51
Current discount Discount to share price of ₹88.40
= -1 x (₹88.40 - ₹48.51) / ₹48.51
-82.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Bharat Electronics is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bharat Electronics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bharat Electronics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:BEL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹5.83
BSE:500049 Share Price ** BSE (2019-04-24) in INR ₹88.6
India Aerospace & Defense Industry PE Ratio Median Figure of 8 Publicly-Listed Aerospace & Defense Companies 13.38x
India Market PE Ratio Median Figure of 2,739 Publicly-Listed Companies 16.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bharat Electronics.

NSEI:BEL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500049 Share Price ÷ EPS (both in INR)

= 88.6 ÷ 5.83

15.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bharat Electronics is overvalued based on earnings compared to the IN Aerospace & Defense industry average.
  • Bharat Electronics is good value based on earnings compared to the India market.
Price based on expected Growth
Does Bharat Electronics's expected growth come at a high price?
Raw Data
NSEI:BEL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
9.3%per year
Global Aerospace & Defense Industry PEG Ratio Median Figure of 68 Publicly-Listed Aerospace & Defense Companies 1.78x
India Market PEG Ratio Median Figure of 586 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:BEL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.2x ÷ 9.3%

1.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bharat Electronics is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bharat Electronics's assets?
Raw Data
NSEI:BEL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹32.90
BSE:500049 Share Price * BSE (2019-04-24) in INR ₹88.6
India Aerospace & Defense Industry PB Ratio Median Figure of 8 Publicly-Listed Aerospace & Defense Companies 1.68x
India Market PB Ratio Median Figure of 3,630 Publicly-Listed Companies 1.09x
NSEI:BEL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500049 Share Price ÷ Book Value per Share (both in INR)

= 88.6 ÷ 32.90

2.69x

* Primary Listing of Bharat Electronics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bharat Electronics is overvalued based on assets compared to the IN Aerospace & Defense industry average.
X
Value checks
We assess Bharat Electronics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Bharat Electronics has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BEL Future Performance

 How is Bharat Electronics expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bharat Electronics expected to grow at an attractive rate?
  • Bharat Electronics's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Bharat Electronics's earnings growth is positive but not above the India market average.
  • Bharat Electronics's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:BEL Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:BEL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 9.3%
NSEI:BEL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 12.1%
India Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 3.2%
Global Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:BEL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:BEL Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 150,112 17,547 19,250 11
2020-03-31 133,388 18,391 17,428 13
2019-03-31 118,469 15,517 16,779 13
NSEI:BEL Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 104,008 -6,866 14,317
2017-03-31 86,683 -609 15,236
2016-03-31 73,538 22,601 13,374

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bharat Electronics's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
  • Bharat Electronics's revenue is expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:BEL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Bharat Electronics Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:BEL Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 7.90 8.90 7.40 10.00
2020-03-31 7.25 8.40 6.80 12.00
2019-03-31 6.94 7.50 6.34 8.00
NSEI:BEL Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 5.83
2017-03-31 5.94
2016-03-31 5.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bharat Electronics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bharat Electronics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bharat Electronics has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BEL Past Performance

  How has Bharat Electronics performed over the past 5 years?

  • Bharat Electronics's last earnings update was 237 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bharat Electronics's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Bharat Electronics's year on year earnings growth rate was positive over the past 5 years.
  • Bharat Electronics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Bharat Electronics's 1-year earnings growth is negative, it can't be compared to the IN Aerospace & Defense industry average.
Earnings and Revenue History
Bharat Electronics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bharat Electronics Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:BEL Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 104,008.00 14,317.20 17,875.70
2017-03-31 86,683.40 15,235.80 15,594.40
2016-03-31 73,537.70 13,373.90 12,672.80
2015-03-31 69,902.34 11,972.06 13,283.74
2014-03-31 64,144.94 9,513.13 15,052.51
2013-03-31 62,170.38 9,107.78 14,002.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bharat Electronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bharat Electronics used its assets more efficiently than the IN Aerospace & Defense industry average last year based on Return on Assets.
  • Bharat Electronics has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Bharat Electronics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bharat Electronics has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BEL Health

 How is Bharat Electronics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Bharat Electronics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Bharat Electronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bharat Electronics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Bharat Electronics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 178.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bharat Electronics Company Filings, last reported 1 year ago.

NSEI:BEL Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 80,287.10 803.60 8,535.60
2017-03-31 77,494.90 635.80 37,674.30
2016-03-31 92,509.30 283.90 69,166.10
2015-03-31 81,229.41 252.72 60,379.25
2014-03-31 72,240.25 4.45 46,045.32
2013-03-31 64,908.78 5.80 53,305.10
  • Bharat Electronics's level of debt (1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 1% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Bharat Electronics earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Bharat Electronics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bharat Electronics has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BEL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.26%
Current annual income from Bharat Electronics dividends. Estimated to be 2.91% next year.
If you bought ₹2,000 of Bharat Electronics shares you are expected to receive ₹45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bharat Electronics's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
  • Bharat Electronics's dividend is above the markets top 25% of dividend payers in India (1.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:BEL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
India Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 2.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:BEL Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 2.73 8.00
2020-03-31 2.42 8.00
2019-03-31 2.42 6.00
NSEI:BEL Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-03-13 2.000 2.127
2019-01-30 2.000 2.444
2018-08-30 2.000 2.283
2018-05-29 2.000 1.791
2018-01-30 3.373 2.391
2017-08-22 2.046 1.160
2017-03-24 2.409 1.539
2017-01-27 1.591 1.131
2016-07-28 1.546 1.290
2016-05-27 1.546 1.369
2016-01-27 0.930 0.891
2015-08-10 0.885 0.804
2015-05-29 0.885 0.831
2014-09-26 0.706 0.819
2014-01-24 0.676 1.605
2013-09-20 0.676 2.131
2013-01-25 0.509 1.386
2012-09-24 0.630 1.691
2012-01-27 0.776 1.887
2011-09-27 0.655 1.452
2011-01-28 0.582 1.147
2010-08-25 0.582 1.103
2010-05-03 0.582 1.090
2010-02-01 0.567 0.929
2009-06-24 0.567 1.193
2009-06-01 0.567 1.411

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Bharat Electronics's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
X
Income/ dividend checks
We assess Bharat Electronics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bharat Electronics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bharat Electronics has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BEL Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
M. Gowtama
COMPENSATION ₹6,622,836
AGE 57
TENURE AS CEO 2.4 years
CEO Bio

Mr. M. V. Gowtama has been the Chairman of the Board, Managing Director and Whole Time Director at Bharat Electronics Limited since November 8, 2016. Mr. Gowtama served as General Manager of Bengaluru Unit at Bharat Electronics Limited until November 8, 2016. He joined BEL at Ghaziabad Unit in January 1983 as a Probationary Engineer. He was initially posted to the D&E-Radar Division where he contributed to the development of Receiver sub-system of Cyclone Warning Radar. In about three-and-half years, his team was able to design, develop, manufacture, deliver and commission the first Cyclone Warning Radar at Paradip in Orissa. The Cyclone Warning Radar development team won the R&D Award.Mr Gowtama was transferred to Hyderabad Unit in May 1986. At Hyderabad Unit, he worked in the D&E, Testing, System Integration, Installation & Commissioning groups of Ajanta project till 1998. His team developed in-house the high voltage power supplies for Ajanta, which was commended by then CMD. He completed MTech in Advanced Electronics from Jawaharlal Nehru Technological University, Hyderabad, even while in service. From 1998 to 2006, he worked on the Sangraha programme of Indian Navy. With ToT from DLRL, his team developed different ESM systems for submarines, helicopters, medium and long-range aircraft. They also developed in-house a light-weight ESM system for small ships called Sanket.Traditionally, project teams at Hyderabad used to look after ToT, development, testing and installation and commissioning activities. However, a new D&E division was established in 2006 to address future businesses in line with the new Defense procurement policy and Mr Gowtama had the opportunity to lead this D&E group as AGM. He was able to establish strong R&D teams at Hyderabad Unit for product/sub-system development, engineering for different platforms and development of complex software.Mr M V Gowtama took over as GM (Technology Planning)/BEL-Corporate Office, on February 1, 2010. Later he served as GM (Milcom)/BEL-Bengaluru and was Executive Director (Missile Systems)/BEL-Bengaluru till his elevation as CMD, BEL. Mr M V Gowtama completed his B. Tech in Electronics and Communications from Sri Venkateswara University College of Engineering, Tirupati, in 1983.

CEO Compensation
  • M.'s compensation has increased by more than 20% in the past year.
  • M.'s remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure of the Bharat Electronics management team in years:

2.4
Average Tenure
  • The tenure for the Bharat Electronics management team is about average.
Management Team

M. Gowtama

TITLE
Chairman & MD
COMPENSATION
₹7M
AGE
57
TENURE
2.4 yrs

Koshy Alexander

TITLE
Director of Finance & Whole Time Director
COMPENSATION
₹4M
TENURE
1.6 yrs

Anandi Ramalingam

TITLE
Director of Marketing & Whole Time Director
COMPENSATION
₹6M
TENURE
2.6 yrs

Ramchander Bagdalkar

TITLE
Director of Human Resources & Whole Time Director
COMPENSATION
₹6M
TENURE
2.3 yrs

Nataraj Krishnappa

TITLE
Director of Other Units & Whole Time Director
COMPENSATION
₹7M
TENURE
2.9 yrs

V. Mahesh

TITLE
Director of R&D

N. A. Murthy

TITLE
Chief Regional Manager of New York
COMPENSATION
₹3M
AGE
64

S. Kumar

TITLE
Chief Vigilance Officer

Ranjan Banerjee

TITLE
Chief Scientist of CRL - Ghaziabad

V. Kumar

TITLE
Chief Technical Officer of Communications - Corporate Office
Board of Directors Tenure

Average tenure of the Bharat Electronics board of directors in years:

2.6
Average Tenure
  • The average tenure for the Bharat Electronics board of directors is less than 3 years, this suggests a new board.
Board of Directors

M. Gowtama

TITLE
Chairman & MD
COMPENSATION
₹7M
AGE
57
TENURE
2.4 yrs

Koshy Alexander

TITLE
Director of Finance & Whole Time Director
COMPENSATION
₹4M
TENURE
1.6 yrs

Anandi Ramalingam

TITLE
Director of Marketing & Whole Time Director
COMPENSATION
₹6M
TENURE
2.6 yrs

Ramchander Bagdalkar

TITLE
Director of Human Resources & Whole Time Director
COMPENSATION
₹6M
TENURE
2.3 yrs

Nataraj Krishnappa

TITLE
Director of Other Units & Whole Time Director
COMPENSATION
₹7M
TENURE
2.9 yrs

V. Mahesh

TITLE
Director of R&D

Vinay katyal

TITLE
Additional Director & GM of MIL.COM - Bengaluru
TENURE
0.4 yrs

Usha Mathur

TITLE
Independent Director
COMPENSATION
₹520K
TENURE
3.3 yrs

Sharad Sanghi

TITLE
Independent Director
COMPENSATION
₹220K
TENURE
3.3 yrs

Bhaskar Ramamurthi

TITLE
Independent Director
COMPENSATION
₹200K
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
02. Apr 19 Sell India Company 25. Mar 19 25. Mar 19 -46,892,768 ₹1.00 ₹-46,890,222
07. Mar 19 Sell India Company 14. Feb 19 14. Feb 19 -28,841,057 ₹70.78 ₹-2,041,498,726
06. Dec 18 Sell India Company 04. Dec 18 04. Dec 18 -101,344,876 ₹82.80 ₹-8,391,092,818
11. Jul 18 Sell India Company 14. Jun 18 18. Jun 18 -16,969,795 ₹107.58 ₹-1,825,580,874
X
Management checks
We assess Bharat Electronics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bharat Electronics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BEL News

Simply Wall St News

Why We Like Bharat Electronics Limited’s (NSE:BEL) 19% Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Bharat Electronics Limited's (NSE:BEL) Earnings Dropped -6.0%, Did Its Industry Show Weakness Too?

After looking at Bharat Electronics Limited's (NSE:BEL) latest earnings update (31 March 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. … BEL's trailing twelve-month earnings (from 31 March 2018) of ₹14b has? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 10%, indicating the rate at which BEL is growing has slowed down

Simply Wall St -

Why We Think Bharat Electronics Limited (NSE:BEL) Could Be Worth Looking At

I've been keeping an eye on Bharat Electronics Limited (NSE:BEL) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe BEL has a lot to offer. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Can Bharat Electronics Limited (NSE:BEL) Maintain Its Strong Returns?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Bharat Electronics has a return on equity of 18% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Should Investors Know About The Future Of Bharat Electronics Limited's (NSE:BEL)?

In March 2018, Bharat Electronics Limited (NSE:BEL) announced its earnings update. … in-line with its track record, as upcoming earnings growth is expected to be 11% next year, similar to the range of average earnings growth for the past five years of 10% per year

Simply Wall St -

Bharat Electronics Limited (NSE:BEL): Dividend Is Coming In 2 Days, Should You Buy?

On the 25 October 2018, Bharat Electronics Limited (NSE:BEL) will be paying shareholders an upcoming dividend amount of ₹0.40 per share. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … 5 questions to ask before buying a dividend stock.

Simply Wall St -

Should You Be Tempted To Sell Bharat Electronics Limited (NSE:BEL) Because Of Its PE Ratio?

Bharat Electronics Limited (NSE:BEL) trades with a trailing P/E of 20x, which is higher than the industry average of 16.6x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio

Simply Wall St -

Is Bharat Electronics Limited's (NSE:BEL) Liquidity Good Enough?

Stocks with market capitalization between $2B and $10B, such as Bharat Electronics Limited (NSE:BEL) with a size of ₹244.27b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Today we will look at BEL’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St -

Who Are The Major Shareholders Of Bharat Electronics Limited (NSE:BEL)?

In this analysis, my focus will be on developing a perspective on Bharat Electronics Limited’s (NSE:BEL) latest ownership structure, a less discussed, but important factor. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … View our latest analysis for Bharat Electronics

Simply Wall St -

Why Bharat Electronics Limited (NSE:BEL) Is A Dividend Rockstar

Over the past 10 years Bharat Electronics Limited (NSE:BEL) has returned an average of 1.00% per year from dividend payouts. … The stock currently pays out a dividend yield of 1.83%, and has a market cap of ₹268.03b. … Does Bharat Electronics tick all the boxes of a great dividend stock?

Simply Wall St -

BEL Company Info

Description

Bharat Electronics Limited, together with its subsidiaries, designs, manufactures, supplies, and exports electronic equipment and systems for the defense and civilian markets in India and internationally. Its defense products include defense communication products, land-based radars, naval systems, electronic warfare systems, avionics, electro optics, tank and armored fighting vehicle electronic systems, weapon systems, C4I systems, shelters and masts, simulators, and batteries; microwave tubes and power modules, microwave super components, digital multichannel data recorders, and hybrid micro circuits; and micro electro mechanical systems. The company’s non defense products comprise e-governance systems, homeland security products, civil radars, integrated traffic management systems, solar power solutions, and telecom and broadcast systems; and PD and strategic products, silicon radiation detectors, passive vacuum devices, EMI filters, anti-collision lights, multichannel voice logging recorder systems, and digital multichannel data recorders. In addition, it offers electronic manufacturing services, such as PCB assembly and testing, precision machining and fabrication, optoelectronic components and assemblies, microwave integrated circuit assemblies, super components modules, cable assemblies and wiring harnesses, and antennae manufacturing services, as well as design and manufacture of transformers, coils, chokes, and sub-assemblies. Bharat Electronics Limited was founded in 1954 and is based in Bengaluru, India.

Details
Name: Bharat Electronics Limited
BEL
Exchange: NSEI
Founded: 1954
₹215,394,816,161
2,436,592,943
Website: http://www.bel-india.in
Address: Bharat Electronics Limited
Outer Ring Road,
Nagavara,
Bengaluru,
Karnataka, 560045,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500049 Equity Shares Mumbai Stock Exchange IN INR 04. Aug 1999
NSEI BEL Equity Shares National Stock Exchange of India IN INR 04. Aug 1999
BSE 500049 INR1 Mumbai Stock Exchange IN INR 24. Apr 2019
NSEI BEL INR1 National Stock Exchange of India IN INR 24. Apr 2019
Number of employees
Current staff
Staff numbers
0
Bharat Electronics employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 12:46
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2018/08/30
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.