Financial & Valuation Intelligence™
Bharat Heavy Electricals Limited
NSE
BHEL
Sector: Capital Goods· Heavy Electrical EquipmentCurrent Price
₹381.1
Market Cap
₹1.62 L Cr
AI Financial Summary
Bharat Heavy Electricals Limited is demonstrating a significant financial turnaround, evidenced by a sharp recovery in net profit and free cash flow as of the latest fiscal periods. While the company maintains moderate leverage, its operational efficiency is trending upward, supported by a strengthening ROCE and a robust forward-looking revenue growth profile.
Business Performance (CAGR)
10 Years
Revenue
1.9%
PAT
19.6%
EPS
20.5%
Book Value
-1.8%
Free Cash Flow
65.1%
Valuation Snapshot
P/E53.4
P/B3.3
EV/EBITDA61.4
P/S4.8
Div Yield0.30%
Financial Health
Debt to Equity0.31
Interest Coverage3.2x
Current Ratio0.77
Cash & Investments₹12.17K Cr
Profitability Metrics
ROE
6.1%
ROCE
9.1%
ROA
2.1%
EBITDA Mgn
7.6%
Op Margin
9.2%
Net Margin
4.7%
Cash Flow Intelligence
Operating Cash Flow₹5.84K Cr
Free Cash Flow₹5.17K Cr
Cash Conversion364.8%
FCF Margin15.3%
Intrinsic Value
PremiumEstimated Intrinsic Value
████████
Current Price₹381.1
Margin of Safety██.██%
Estimated Intrinsic Value & DCF Fair Value are available with Premium plans.
AI Business Verdict
BHEL is in a clear recovery phase, showing improved financial discipline and cash flow generation that supports a positive outlook, provided it manages its working capital effectively.
- Strong recovery in net profitability and cash flow metrics.
- Manageable debt-to-equity ratio providing financial flexibility.
- High quality of earnings as evidenced by strong OCF-to-PAT ratio.
Balance Sheet
AI-Powered Analysis
Balance Sheet Strength™
51/100
Adequate
Bharat Heavy Electricals Limited has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
AI Confidence
92%
Stability
48
Flexibility
69
Strength Factors
Liquidity42
Leverage86
Working Capital38
Asset Quality27
Shareholder Strength45
Financial Stability48
Financial Flexibility™
69/100
Good
Capacity to fund growth, withstand downturns and return capital.
Total Assets
₹76.89K Cr
▼ 4.6% YoY
Total Liabilities
₹50.74K Cr
▼ 9.2% YoY
Shareholder Equity
₹26.15K Cr
▲ 5.8% YoY
Net Cash Position
+₹3.98K Cr
Excellent
Debt / Equity
0.31x
Manageable
Enterprise Value
₹1.58 L Cr
Capital Structure
Assets
₹76.89K Cr
Equity
₹26.15K Cr (34.0%)
Liabilities
₹50.74K Cr (66.0%)
Debt Intelligence™
Debt vs Cash Trend
Debt / Equity0.31x
Interest Coverage3.2x
Debt / EBITDA5.12x
Net Debt₹-3.98K Cr
Debt Trend (5Y)120.8%
Debt MaturityWell Staggered
Liquidity Intelligence™
Current Ratio0.77
Quick Ratio0.44
Cash Ratio0.23
Working Capital₹-9.85K Cr
Operating Cash CoverageGood
Short-term LiquidityWeak
Working Capital Intelligence™
CCC Trend
Receivable Days73
Inventory Days152
Payable DaysNot Available
Cash Conversion Cycle225 days
Asset Quality (% of Total Assets)
Cash & Investments15.4%
Property, Plant & Equip.3.9%
ReceivablesNot Available
InventoryNot Available
GoodwillNot Available
Intangible AssetsNot Available
Other Assets95.5%
Shareholder Strength™
Strength Radar
Book Value CAGR (5Y)-1.8%
Net Worth CAGR (5Y)-2.4%
Retained EarningsWeak
Equity Dilution0.00%
Buyback EfficiencyStrong
Dividend Sustain.Strong
Balance Sheet Evolution
Annual
Balance Sheet Risk Monitor
Debt RiskLow
Liquidity RiskHigh
Working Capital RiskHigh
Refinancing RiskModerate
Asset Quality RiskHigh
Dilution RiskLow
Contingent LiabilityLow
Overall Balance Sheet RiskElevated
Balance Sheet Stress Test™
Economic Slowdown44
Acquisition Capacity74
High Interest Rates62
Dividend Sustainability57
Revenue Decline55
Cash Flow Resilience60
Expansion Capacity59
Overall Resilience Score
59/100
Adequate Resilience
AI Balance Sheet Commentary
Overall Assessment
- Bharat Heavy Electricals Limited has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
What Stands Out
- Net cash position — debt fully covered by cash & investments
- Large cash & investment reserves
Areas To Monitor
- Tight short-term liquidity cushion
- Long working capital cycle
- Large 'other assets' bucket — investigate composition
- Slow book value compounding
Financial data based on consolidated numbers and TTM · Source: Company Filings, Annual Report AI Analysis · Data as of: 31/03/2026