ScoreWhy is Bharat Heavy Electricals Ltd. ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of -1.00 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of -1.00 times
- The company has been able to generate a Return on Equity (avg) of 1.17% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate -6.50% of over the last 5 years
3
Stock is technically in a Mildly Bearish range
- A key technical factor - Bollinger Band has been Bearish since 18 Mar 2025
4
With ROCE of 2.8, it has a Expensive valuation with a 2.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.62%, its profits have risen by 66.7% ; the PEG ratio of the company is 2.1
5
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -1.04% in the last 1 year, its fall in the stock was much higher with a return of -17.62%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electric Equipment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is BHEL for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
BHEL
-17.98%
-0.39
45.32%
SENSEX
0.45%
0.02
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.99%
EBIT Growth (5y)
-6.50%
EBIT to Interest (avg)
-1.90
Debt to EBITDA (avg)
3.55
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.67
Tax Ratio
23.38%
Dividend Payout Ratio
30.85%
Pledged Shares
0
Institutional Holding
23.54%
ROCE (avg)
-2.56%
ROE (avg)
1.17%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
142
Industry P/E
60
Price to Book Value
3.05
EV to EBIT
88.14
EV to EBITDA
68.36
EV to Capital Employed
2.76
EV to Sales
2.82
PEG Ratio
2.13
Dividend Yield
0.12%
ROCE (Latest)
2.84%
ROE (Latest)
1.84%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
PBT LESS OI(Q)
At Rs 70.84 cr has Grown at 725.80 %
PAT(Q)
At Rs 134.70 cr has Grown at 123.3 %
NET SALES(Q)
At Rs 7,277.09 cr has Grown at 32.22 %
-5What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 0.38 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 5,104.76 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.98 times
NON-OPERATING INCOME(Q)
is 60.37 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for BHEL
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 70.84 cr has Grown at 725.80 %
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 134.70 cr has Grown at 123.3 %
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 7,277.09 cr has Grown at 32.22 %
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for BHEL
Debt-Equity Ratio - Half Yearly
Highest at 0.38 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
is 60.37 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 5,104.76 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 3.98 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
