capital_goods
Bharat Heavy Electricals
BHEL · Nifty 50
₹392.25
Price 2026-06-17
At a Glance
Fundamental
95/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Bharat Heavy Electricals scores 95/100 on fundamentals (strong). Bharat Heavy Electricals: BROAD EXPANSION regime.
Fundamental Score: 95/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 6.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 6.62% is modest margin-driven and stable. Net margin of 4.9% × asset turnover of 0.46x × leverage of 2.9x.
What This Means
Net margin of 4.9% means the company keeps ₹4.9 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.46x means the company generates ₹0.46 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 2.9x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
32.7%
Operating
8.8%
Net
4.9%
Gross margin 32.7% → operating margin 8.8% → net margin 4.9%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 3.4x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
COMFORTABLEInterest covered 4.1x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.4x is moderate.
Free Cash Flow
STRONGFCF margin at 14.9% — strong cash generation. Business is self-funding.
Peer Comparison
Bharat Heavy Electricals is compared against 10 peers in the capital_goods sector.
Key Watchpoints
Breaks above ₹412 (+5%)
Trend reversal confirmation
Breaks below ₹373 (-5%)
Further downside risk
Capital_Goods sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Working capital is providing significant cash. Stretching payables — temporary boost.
Governance structure concerns. Independent director representation may be weak.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 3 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes