Bharat Electronics Ltd.
NSE: BELBharat Electronics Ltd.: A 30-second snapshot
Bharat Electronics Limited (BEL) is a defence-electronics PSU trading at ₹426.9, a PE of 51.57x on trailing earnings and 37.58x on a forward basis, with ROE of 27.56% and a 5-year revenue CAGR of 11.7%. The stock sits 2.2% above its 200-DMA and marginally below its 50-DMA, with a 52-week drawdown of -9.83% and a 1-year price gain of 6.96%. Recent news flow covers new defence order wins and an MoU with DGQA for electronic fuzes.
P/E
51.6
Forward P/E
37.6
ROE
+27.6%
Debt / Equity
0.27
Profit Margin
+22.0%
Div. Yield
+1.0%
5Y ROE > 15%
4/5
5Y FCF > 0
3/5
Quality
67/100
News
8 headlines · 4 positive · 0 negative
BEL, DGQA sign MoU for long-term provisioning of electronic fuzes - PSU Watch
PSU Watch
Bharat Electronics Limited bags ₹608 crore contract. - News on Projects
News on Projects
Bharat Electronics wins additional defence orders valued at ₹608 crore - CNBC TV18
CNBC TV18
Bharat Electronics Limited Bags Fresh ₹608 Crore Defence Orders Across Key Military Systems - defence.newsd.in
defence.newsd.in
How Bharat Electronics Limited Strengthens India's Defence Capabilities - IBEF
IBEF
Recent context
- ·BEL signed an MoU with DGQA in June 2026 for long-term provisioning of electronic fuzes, a multi-year institutional tie-up relevant to sustained defence-electronics revenue.
- ·In May 2026, the company secured ₹608 crore in fresh defence orders across key military systems, as reported by CNBC TV18 and specialised defence-sector outlets.
- ·News sentiment across 8 recent items is 4 positive and 4 neutral with zero negative items; the positive items centre on order wins and institutional commentary on India's defence electronics build-out.
Strengths
- +ROE of 27.56% ranks 2nd among 6 infrastructure-sector peers, with 4 of the available years above 15%, reflecting a consistent return profile for a capital-intensive business.
- +Consistency score of 88 and a flat debt trend (D/E 0.27) point to balance-sheet discipline; leverage is well below sector peers with higher capital requirements.
- +Recent news includes a ₹608 crore defence contract win (May 2026) and an MoU with DGQA for long-term electronic fuze provisioning, extending BEL's institutional order pipeline.
- +Forward PE of 37.58x represents a 27% compression from the trailing PE of 51.57x, reflecting Street-embedded expectations of earnings acceleration in the coming period.
Weaknesses
- −5-year earnings CAGR of 4.5% is less than half the 5-year revenue CAGR of 11.7%, indicating that profit margins have compressed materially over the measurement window even as revenue scale grew.
- −FCF was positive in only 3 of the available sample years, raising questions about the quality of cash conversion behind reported top-line growth despite modest balance-sheet leverage.
- −Trailing PE of 51.57x is the second-lowest in the peer group by absolute number, but remains elevated relative to the company's own 4.5% earnings growth trajectory over five years.
- −Price has gained only 6.96% over 12 months and is -0.91% over 3 months, underperforming relative to the premium multiple the stock carries on reported earnings.
Open questions
- ?Does the gap between 5-year revenue CAGR (11.7%) and earnings CAGR (4.5%) reflect temporary cost absorption — such as ramp-up spending on new production lines — or a structural shift in the margin profile of BEL's product mix?
- ?How dependent is BEL's order pipeline on a concentrated set of government/defence procurement decisions, and how has order-book conversion to revenue evolved over the past 3–5 years?
- ?The forward PE of 37.58x implies a meaningful step-up in earnings; what specific programmes or contracts underpin analyst earnings estimates for the next 12–24 months?
- ?BEL ranks 2nd on ROE (27.56%) among infrastructure peers but trades at a premium trailing PE (51.57x) relative to L&T (35.98x) — what operational or growth attributes justify that differential, and has the gap narrowed or widened over recent years?
Peer comparison: Infrastructure
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BEL | Bharat Electronics Ltd.You're viewing | 51.6 | +27.6% | 49 |
| Industry avg | across 5 peers | 86.6 | +22.0% | 47 |
| CUMMINSIND | Cummins India Ltd. | 68.9 | +29.5% | 69 |
| ENRIN | Siemens Energy India Ltd. | 104.3 | — | 51 |
| ABB | ABB India Ltd. | 98.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 124.8 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 36.0 | +16.9% | 24 |
Technical state
Current price
₹426.90
SMA 50
₹427.04
SMA 200
₹417.50
RSI (14)
58.2 (neutral)
From 52w high
-9.8%
1Y return
+7.0%
3M return
-0.9%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumTrailing PE of 51.57 is elevated relative to the 5-year earnings CAGR of 4.5%, while revenue grew at 11.7% CAGR over the same period — profits grew at less than half the revenue rate, suggesting structural margin compression. Forward PE of 37.58 embeds meaningful earnings acceleration; if that does not materialise the multiple faces downside pressure.
- lowFCF was positive in only 3 of the available sample years. Absolute leverage is modest (D/E 0.27, flat trend) and the consistency score is 88, but limited FCF coverage raises questions about cash-conversion quality relative to reported revenue growth.
- lowPrice of ₹426.9 sits marginally below the 50-DMA (₹427.04) while remaining above the 200-DMA (₹417.5). The 3-month return is -0.91% and drawdown from the 52-week high is -9.83%, with RSI at 58.18 in neutral territory — suggesting near-term consolidation without a directional signal.
- low1-year price return data is absent for all 5 sector peers and ROE is missing for 2 of 5, limiting cross-sectional ranking reliability. Among available data, BEL ranks 2nd of 6 on ROE (27.56% vs peer range 16.95–29.46%) and 2nd of 6 on PE (51.57 vs sector range 35.98–124.84), positioning it as neither the cheapest nor the most expensive peer on a headline multiple basis.
Cross-section contradictions
- 5-year revenue CAGR of 11.7% and ROE of 27.56% with a persistence consistency score of 88 reflect durable operational performance, yet 5-year earnings CAGR of 4.5% means profits grew at less than half the revenue rate — pointing to a sustained margin compression across the same high-revenue-growth period.
- News sentiment across 8 articles is entirely non-negative (4 positive, 4 neutral, 0 negative) with recent order wins including a ₹608 crore defence contract, yet the 3-month price change is -0.91% and price is marginally below the 50-DMA — a modest divergence between order-flow momentum and near-term price action.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days