BEL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

Let’s break down Bharat Electronics Ltd. (BEL) from the ground up—its financial guts, valuation posture, strategic standing, and why it’s on the radar for long-term wealth builders.

📊 Core Financials

EPS: ₹7.52 — solid base for a public sector enterprise.

ROE: 29.3% | ROCE: 39.0% — outstanding returns, reflects disciplined capital use.

Debt-to-Equity: 0.00 — practically debt-free; a fortress balance sheet.

Qtr Profit Var: +22.5% — strong profit momentum despite quarterly dip (₹969 Cr vs ₹2,127 Cr).

Dividend Yield: 0.57% — modest, but consistent; not a major driver.

⚡ BEL’s fundamentals are robust and capital-efficient, especially for a company with government affiliation.

💵 Valuation Metrics

P/E Ratio: 51.6 — high, but justifiable given growth metrics; still lower than industry average (68.0).

P/B Ratio: ~14.2 (₹388 ÷ ₹27.3) — indicates the market’s premium pricing for future potential.

PEG Ratio: 1.69 — slightly elevated but within tolerable bounds for growth investors.

Intrinsic Value: Likely lower than market price due to recent earnings decline, but supported by long-term defense contracts.

🛡️ Business Model & Strategic Advantage

Sector: Defence electronics — radar, communication, surveillance, and strategic systems.

Moats

Strategic government contracts — repeatable and long-term.

Proprietary technology and manufacturing ecosystems.

Risk Factors

Geopolitical and regulatory sensitivities.

Lumpy revenue from large contracts.

FII sentiment: +1.01% — institutional tailwind.

DII sentiment: –0.27% — mixed domestic stance.

📉 Technical Pulse

RSI: 37.7 — close to oversold zone; signals potential rebound.

MACD: –2.67 — trend suggests short-term weakness.

Volume: Far above weekly average — institutional activity in play.

🎯 Suggested Entry Zone

₹355 – ₹375: Supportive range close to DMA50 and RSI recovery zone.

₹330 – ₹340: Ideal entry at DMA200 during broader market dip for stronger margin of safety.

🚀 Long-Term Holding View

BEL sits at the intersection of sovereign demand and technological push, making it ideal for a 5–8 year compounder portfolio. Future growth drivers

Rising defence budgets & Make in India tailwinds.

Export expansion of defence products.

Investments in AI, drone systems, and integrated platforms.

Want to compare BEL with HAL or Data Patterns? That would paint a full canvas of India’s defense sector bets. Happy to line them up for you.

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