defense
Bharat Electronics
BEL · Nifty 50
₹419.85
Price 2026-06-17
At a Glance
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Bharat Electronics scores 80/100 on fundamentals (strong). Bharat Electronics: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 80/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 28.8% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 28.77% is strong margin-driven and stable. Net margin of 22.3% × asset turnover of 0.7x × leverage of 1.9x.
What This Means
Net margin of 22.3% means the company keeps ₹22.3 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.70x means the company efficiently uses its assets to generate revenue. Leverage of 1.9x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
48.5%
Operating
29.7%
Net
22.3%
Gross margin 48.5% → operating margin 29.7% → net margin 22.3%. Margins are stable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.2x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 841.2x — very comfortable. Debt service is not a concern.
Free Cash Flow
STRONGFCF margin at 1.8% — barely positive. Limited cash after capex.
Peer Comparison
Bharat Electronics is compared against 7 peers in the defense sector.
Key Watchpoints
Breaks above ₹441 (+5%)
Trend reversal confirmation
Breaks below ₹399 (-5%)
Further downside risk
PE reverts to 5Y median of 48.6
Valuation normalization
Defense sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only 0.2x net income. Profit not converting to cash — aggressive accounting possible.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Significant income from non-operating sources. Core business may be smaller than it appears.
Working capital is consuming significant cash. Operational efficiency declining.
Potential accounting concerns. Cross-check with earnings quality flags.
Governance structure concerns. Independent director representation may be weak.
High revenue multiple. Market pricing in significant growth or margins expansion.
Collection cycle changing. Collection improving — positive for cash flow.
🔴 3 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes