Bharat Electronics Ltd.
ISIN: INE263A01024 • Market Cap: ₹2.99 Lakh Cr
The 5-Pillar Quality Audit for Bharat Electronics Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (28.6%), Return on Capital Employed (32.7%), and equity compounding (25.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (12.3%) and 3Y PAT CAGR (15.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 48.61 vs PEG of 3.52 and Dividend Yield of 0.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 51.1%, backed by 39.0% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 32.7%)
Bharat Electronics Ltd. generates exceptional return on capital employed of 32.7%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 25.3%)
Shareholder equity compounds at a healthy 25.3%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Deep Institutional Sponsorship (39.0%)
Mutual funds, domestic DIIs, and foreign FIIs hold 39.0%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking BEL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 80/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare BEL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Bharat Electronics Ltd. (BEL)Current | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
| Bharat Heavy Electricals Ltd. (BHEL) | 65/100 | ₹1.46 Lakh Cr | 59.91 | 7.6% | 0.30 | View |
Frequently Asked Questions: Bharat Electronics Ltd.
Q:What is the 5-Pillar Fundamental Score for Bharat Electronics Ltd. (BEL)?
Bharat Electronics Ltd. has a RupeeTools Fundamental Score of 80/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (99/100), Financial Health (85/100), Growth (70/100), Valuation (48/100), and Ownership Quality (85/100).
Q:Is BEL fundamentally strong for long-term investment?
Yes, BEL exhibits solid fundamental strength with a 80/100 score, driven by a return on equity of 25.3% and a debt-to-equity ratio of 0.00.
Q:Does BEL pass the Coffee Can Investing filter?
Yes! BEL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does BEL compare against other Capital Goods peers?
Within India's Capital Goods sector, BEL trades at a P/E of 48.61 and generates an ROCE of 32.7%. Compare its 5-Pillar score of 80/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Tata Motors Ltd. (71/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.