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Bharat Electronics Ltd logo

Bharat Electronics Ltd

NSE: BEL BSE: 500049

429.65

(-0.75)%

Fri, 06 Feb 2026, 11:02 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are covered by earnings (1.7x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
  • Bharat Electronics's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Bharat Electronics's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Cash flow for Bharat Electronics is expected to increase by more than 50% in 2 years time.
  • Bharat Electronics's earnings are expected to exceed the low risk growth rate next year.
  • Bharat Electronics's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Aerospace & Defense industry average.
  • An improvement in Bharat Electronics's performance (ROE) is expected over the next 3 years.
  • Bharat Electronics's revenue growth is expected to exceed the India market average.
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Cons

  • Bharat Electronics's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).
  • Bharat Electronics's earnings growth is positive but not above the India market average.
  • Bharat Electronics's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Bharat Electronics's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Bharat Electronics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Bharat Electronics's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Bharat Electronics's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Bharat Electronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bharat Electronics is profitable, therefore cash runway is not a concern.
  • Bharat Electronics is profitable, therefore cash runway is not a concern.
  • Bharat Electronics has no debt, it does not need to be covered by operating cash flow.
  • Bharat Electronics has no debt, it does not need to be covered by short term assets.
  • Bharat Electronics's cash and other short term assets cover its long term commitments.
  • Bharat Electronics has no debt compared to 5 years ago when it was 0.2%.
  • Bharat Electronics has no debt, therefore coverage of interest payments is not a concern.
  • Bharat Electronics has no debt.
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • M.'s remuneration is lower than average for companies of similar size in India.
  • M.'s compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Bharat Electronics management team is about average.
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Cons

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

past

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Pros

  • Bharat Electronics's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Bharat Electronics has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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Cons

  • Bharat Electronics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Bharat Electronics used its assets less efficiently than the IN Aerospace & Defense industry average last year based on Return on Assets.
  • Bharat Electronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bharat Electronics's 1-year earnings growth is negative, it can't be compared to the IN Aerospace & Defense industry average.

value

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Pros

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    Cons

    • Bharat Electronics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Bharat Electronics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Bharat Electronics is overvalued based on assets compared to the IN Aerospace & Defense industry average.
    • Bharat Electronics is poor value based on expected growth next year.
    • Bharat Electronics is overvalued based on earnings compared to the IN Aerospace & Defense industry average.
    • Bharat Electronics is overvalued based on earnings compared to the India market.
    • BEL underperformed the Aerospace & Defense industry which returned -18.7% over the past year.
    • BEL underperformed the Market in India which returned -14.5% over the past year.
    • NSEI:BEL is up 4.3% underperforming the Aerospace & Defense industry which returned 14.2% over the past month.
    • NSEI:BEL is up 4.3% underperforming the market in India which returned 8% over the past month.

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