B H E L (BHEL)

FairStock Score: 43/100 — MIXED

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

Key Financials

AI Analysis

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

I start with Graham’s margin of safety. At ₹421.70, BHEL trades at a P/E of 60.24 and P/B of 5.62, while its book value is ₹75.09 and Graham Number is ₹61.14. That gives a margin of safety of -333.35%, meaning the price is far above conservative intrinsic value. Market cap is ₹1.47 lakh Cr. For a heavy electrical equipment maker, I want evidence of durable returns, but ROE is 3.29% and ROCE is 4.87%. Debt/equity of 0.31 is manageable. The latest quarter showed sales of ₹8,473 Cr and net profit of ₹390 Cr, so margins are thin. Sales growth of 40.30% and profit growth of 56.87% look strong, but 5-year revenue CAGR is 14.31% and free cash flow is negative at ₹-539 Cr. A Piotroski F-Score of 8/9 is a positive accounting signal, yet Altman Z-Score of 1.67 and EV/EBITDA of 134.09 warn that the market is pricing in a lot. PEG of 1.94 isn’t cheap either. Promoter holding of 63.17% offers stability, but dividend yield is only 0.33%. The FairStock Score of 43/100 confirms a mixed picture. Heavy electrical equipment can have scale advantages, but current returns don’t prove pricing power. This is a cyclical business. I would wait for positive free cash flow, ROCE above cost of capital, and a price closer to Graham Number or book value before calling it a genuine value opportunity.

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