Bharat Electron (BEL)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I ask whether I am paying a fair price for a wonderful business. Bharat Electron has many marks of quality: zero debt-to-equity, ROE 27.65%, ROCE 38.88%, Piotroski F-Score 7/9, Altman Z-Score 11.30, current ratio 1.76, and free cash flow ₹1,204 Cr. Latest quarter sales were ₹7,154 Cr with net profit ₹1,580 Cr. Sales growth of 24.45% and five-year revenue CAGR of 12.88% show a growing aerospace and defense business, while promoter holding of 51.14% gives stability. However, profit growth is only 8.17%, so the bottom line is not compounding as fast as the top line — a yellow flag. The trouble is price. At ₹410.80 and market cap ₹3.00 lakh Cr, P/E is 49.02, P/B 12.52 versus book value ₹32.82, EV/EBITDA 41.98, and PEG 3.67. Graham Number is just ₹73.60 and DCF intrinsic value ₹64.13. That implies a margin of safety of -504.21% — I am paying many times what conservative intrinsic value suggests. Dividend yield is only 0.61%, so the cash return is thin. The 52-week range is ₹360.80–₹473.45, so the current price is not distressed. So I see a strong, debt-light, high-return business but a very expensive stock. FairStock score 61/100 (STEADY) supports 'stalwart' rather than bargain. I would watch profit growth, cash conversion, and any correction toward intrinsic-value estimates. Until then, I can admire BEL but not buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer