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Bharat Heavy Electricals Ltd logo

Bharat Heavy Electricals Ltd

NSE: BHEL BSE: 500103

256.55

(-0.81%)

Thu, 12 Mar 2026, 06:21 am

Bharat Heavy Electricals Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
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Cons

  • Unable to calculate sustainability of dividends as Bharat Heavy Electricals has not reported any payouts.
  • Unable to evaluate Bharat Heavy Electricals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Bharat Heavy Electricals's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

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Pros

  • Bharat Heavy Electricals's revenue growth is expected to exceed the India market average.
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Cons

  • Bharat Heavy Electricals's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Bharat Heavy Electricals's revenue is expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Bharat Heavy Electricals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bharat Heavy Electricals has been profitable on average in the past, therefore cash runway is not a concern.
  • Bharat Heavy Electricals has been profitable on average in the past, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 6.7x debt.
  • Bharat Heavy Electricals's cash and other short term assets cover its long term commitments.
  • Bharat Heavy Electricals's level of debt (17.1%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

  • Operating cash flow is negative therefore debt is not well covered.
  • The level of debt compared to net worth has increased over the past 5 years (5.1% vs 17.1% today).

management

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Pros

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    Cons

    • The average tenure for the Bharat Heavy Electricals board of directors is less than 3 years, this suggests a new board.
    • The average tenure for the Bharat Heavy Electricals management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • Bharat Heavy Electricals is covered by less than 3 analysts.
      • Bharat Heavy Electricals has significant price volatility in the past 3 months.

      past

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      Pros

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        Cons

        • Unable to compare Bharat Heavy Electricals's 1-year earnings growth to the 5-year average as it is not currently profitable.
        • Bharat Heavy Electricals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
        • It is difficult to establish if Bharat Heavy Electricals has efficiently used its assets last year compared to the IN Electrical industry average (Return on Assets) as it is loss-making.
        • It is difficult to establish if Bharat Heavy Electricals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
        • It is difficult to establish if Bharat Heavy Electricals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
        • Unable to compare Bharat Heavy Electricals's 1-year growth to the IN Electrical industry average as it is not currently profitable.

        value

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        Pros

        • Bharat Heavy Electricals is good value based on assets compared to the IN Electrical industry average.
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        Cons

        • Bharat Heavy Electricals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
        • Bharat Heavy Electricals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
        • Bharat Heavy Electricals is loss making, we can't compare its value to the IN Electrical industry average.
        • Bharat Heavy Electricals is loss making, we can't compare the value of its earnings to the India market.
        • 500103 underperformed the Electrical industry which returned -33.5% over the past year.
        • 500103 underperformed the Market in India which returned -14.5% over the past year.
        • BSE:500103 is up 3.8% underperforming the Electrical industry which returned 9.3% over the past month.
        • BSE:500103 is up 3.8% underperforming the market in India which returned 8% over the past month.

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