Skip to content
Yadnya Investment Academy

Yadnya Investment Academy

Financial Planning Made Simple

Popular Tags
  • Economic Concepts
  • daily news snippets
  • Daily News Snippets- 17 February 2022
  • daily news updates
  • Daily News Snippets- 18 February 202
  • Daily News Snippets- 21 February 2022
  • Daily News Snippets- 23 February 2022
Primary Menu
  • Products
    • Personalized Financial Planning
    • Stock Market Analysis Subscription
    • Simplest Income Tax Information Bank
    • Comprehensive Mutual Fund Reviews
    • Do-it-Yourself Financial Planning
  • E-BooksTax Planning
    • Financial Planning E-Books
    • Recently Added E-Books
    • Company/Stock Review E-Books
    • Mutual Fund Review E-Books
    • Income Tax E-Books
  • Financial Planning
    • Basic Concepts
    • Risk Profiling
    • Retirement Planning
    • Tax Saving Funds
    • Home Loans
    • Post Office Schemes
    • Bank Deposits – Fixed, Saving, Recurring
    • Children Education
    • Other Schemes
  • Stock Market
    • Stock Market Concepts
    • Sector Analysis
    • Stock Performance Analysis & Updates
    • IPOs
  • Mutual Funds
    • Mutual Fund Concepts
    • Tax Saving Funds
    • Balanced Funds
    • Debt Funds
  • About Us
  • Home
  • Stock Market
  • Stock Performance Analysis & Updates
  • BEL Share Price is Falling – Detailed Analysis
  • Stock Performance Analysis & Updates

BEL Share Price is Falling – Detailed Analysis

3 min read
5 years ago
Bharat Electronics Ltd (BEL) is the PSU company with more than Rs 18k Crores Market Cap. It is currently (Feb 2019) trading at PE of near 10 and looks very attractive.

Bharat Electronics Stock Review – Why is BEL Share Price Going Down Feb 2019

Bharat Electronics Limited (BEL) is an Indian state-owned aerospace and defence company with about nine factories, and several regional offices in India. It is owned by the Indian Government and primarily manufactures advanced electronic products for the Indian Armed Forces.

BEL produces a wide range of equipment in fields such as Defence Communication, Radars, Naval Systems, C4I Systems, Weapon Systems, Homeland Security, Telecom & Broadcast Systems, Electronic Warfare, Tank Electronics, Electro Optics, Professional Electronic Components and Solar Photovoltaic Systems, BEL also provides turnkey system solutions. Civilian products from BEL include Electronic Voting Machines, Tablet PC, solar-powered traffic signal systems and Access Control Systems.

Bharat Electronics (BEL) Company Review

  • Market Capitalisation – The market cap of the company is around Rs. 18,482 Cr. It is a mid-cap company.
  • PE Ratio – The current PE ratio of BEL is 10.19. The 3-year average PE of the company is 23 and 5-year average PE is 19. The current PE is 50% down than its 3-year and 5-year average PE. So, at this PE the company looks very attractive.
  • Stock Price Movement – Currently (Feb 2019), the stock of BEL is trading at Rs. 76.80. The 52-week of the company is Rs. 157.95. The stock is almost 50% from its top.
  • Return on Capital Employed (ROCE) – ROCE is 25.36%. If the ROCE of a company is more than its PE ratio and is being consistently being maintained that way, then it is a very positive and healthy sign.
  • Return on Equity (ROE) – The ROE of the company is 18.32%. Both ROCE and ROE are very strong.
  • Government Company – Bharat Electronic Ltd is Public Sector Unit (PSU) company. Currently, the government holds 61% stake in the company. In Q2FY18-19, the stake of the government in the company was almost 66%. The government downsized their stake because of the ongoing Bharat 22 ETF and others.
  • Foreign Institutional Investors (FII) – In Q2FY18-19, the FII holding in the company was 4.9%. And now in Q3FY18-19, FII’s hold 7% stake in BEL. This means it looks attractive to FII’s too.
  • Non-Defence Revenue – Revenue from Electronic Voting Machines, Tablet PC, etc. This time 34% of the company’s revenue came from Non-defence segment. Usually, this contribution of the non-defence segment is around 20%.
  • Order Book – BEL has a pending order book of almost Rs. 48,000 Cr. The Trailing Twelve Month (TTM) revenue of the company is close to Rs. 11,000 Cr. So, an earning visibility for the next 4 years can be clearly seen. The order book of the company is very strong. In the last 9 months, BEL has taken orders worth Rs. 16,000 Cr.

Reasons behind the Fall in the Share of BEL

  • Being a Mid-cap stock – After September 2018, there have been heavy corrections in mid-cap and small cap. The BSE Small cap index is 35% down and the mis-cap index too is 20%-25% down. Because of this many stocks got hammered, BEL being a part of that hammering.
  • Last 12 Quarterly Results – The results of Bel in the last 3 years, that is the results of the last 12 quarters have shown significant fluctuations in the same range (revenues as well as profits). In the quarter 3 years back BEL had a net profit of around Rs. 700 Cr and in the latest quarter they had net profits around Rs. 500 Cr. So, these are the reasons why the stock has underperformed.

Summary

  • The current quarter of the company has been very good in terms of revenue and profits.
  • Bharat Electronic Ltd has very strong order inflows.
  • This is a stock which investors can keep in their radar.

Notes: –

  • The numbers that are used are approximate and have been rounded for presentation purposes.
  • We are not in any way saying that this is a bad company, or the stock of this company is bad.
  • We are also not suggesting anyone to immediately go and buy this stock or invest in the stock markets.
  • Only an analysis has been presented here. No judgments or final statements are being made here.

Share this with your friends and family!

  • Twitter
  • Facebook
  • LinkedIn
  • WhatsApp
  • Telegram
  • More
  • Tumblr
  • Pinterest
  • Email
  • Reddit
  • Pocket

Related

Tags: BEL share is falling BEL Share review BEL stock falling BEL Stock Review Bharat Electronics Stock Review Stock Market Why Bharat Electronics share is falling?

Continue Reading

Previous United Breweries Vijay Mallya Case Study
Next Page Industries Share Review & Analysis

Suggested Articles

3 min read
  • Stock Performance Analysis & Updates

Why Muthoot Finance Stock is trading at 52-Week Levels | What Should Investors Do?

1 year ago
3 min read
  • Stock Performance Analysis & Updates

Moody’s upgrades Tata Steel’s Outlook | Is it Right Time to Invest in Tata Steel?

1 year ago
2 min read
  • Stock Performance Analysis & Updates

What is the Nifty 100 Low Volatility 30 Index? How Does It Work? Should You Invest?

1 year ago

3 thoughts on “BEL Share Price is Falling – Detailed Analysis”

  1. KHALAK SINGH SOLANKI says:
    February 23, 2019 at 7:48 am

    As a PSU Company no Bright Future for neither Traders nor Investors

    Reply
    1. Yadnya Investment Academy says:
      February 23, 2019 at 9:10 am

      Only hope is rapid divestment after elections.

      Reply
  2. Pingback: Investment FAQs with Parimal Ade (Investment Satsang-10) -

Leave a ReplyCancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Translate this blog to your Language

E-Books by Yadnya

Most Useful Ebooks on Mutual funds and Stocks Review

Top Posts

  • What is PE Ratio? (Trailing P/E vs Forward P/E)
    What is PE Ratio? (Trailing P/E vs Forward P/E)
  • Top 6 Natural Gas  Distribution Companies in the Indian Stock Market
    Top 6 Natural Gas Distribution Companies in the Indian Stock Market
  • 3 Methods of GDP Calculation
    3 Methods of GDP Calculation
  • Comparison of Top 5 Cement Companies |UltraTech vs Shree vs Ambuja vs ACC vs Dalmia Bharat
    Comparison of Top 5 Cement Companies |UltraTech vs Shree vs Ambuja vs ACC vs Dalmia Bharat
  • What are the Future Plans of Tata Motors | Is it a Growth Story to Watch?
    What are the Future Plans of Tata Motors | Is it a Growth Story to Watch?

Recent Posts

  • Latest Savings Account Interest Rates of Major Banks
  • Fixed Deposit Interest Rates of Small Finance Banks
  • Latest Fixed Deposit Interest Rates of Major Banks
  • Latest Recurring Deposit Interest Rates of Major Banks
  • Latest Recurring Deposit Interest Rates of Small Finance Banks

Articles by Category

Create your FREE Financial Plan

Personalized Financial Planning Free Financial Plan

Follow Us

  • YouTube
  • Facebook
  • Instagram
  • Twitter
  • Pinterest
  • SoundCloud

Our Websites

  • Personalized Financial Planning
  • Stock Market Analysis Subscription
  • Simplest Income Tax Information Bank
  • Comprehensive Mutual Fund Reviews
  • Do-it-Yourself Financial Planning

Our Products

  • Personalized Financial Planning
  • Stock Market Analysis Subscription
  • Simplest Income Tax Information Bank
  • Comprehensive Mutual Fund Reviews
  • Do-it-Yourself Financial Planning

Our E-Books

  • Recently Added E-Books
  • Company/Stocks Review E-Books
  • Mutual Funds Review E-Books
  • Financial Planning E-Books

Useful Links

  • Become an Affiliate
  • Contact Us
  • Privacy Policy
  • FAQs
  • Disclaimer

Top Posts & Pages

  • What is PE Ratio? (Trailing P/E vs Forward P/E)
  • Top 6 Natural Gas Distribution Companies in the Indian Stock Market
  • 3 Methods of GDP Calculation
  • Comparison of Top 5 Cement Companies |UltraTech vs Shree vs Ambuja vs ACC vs Dalmia Bharat
  • What are the Future Plans of Tata Motors | Is it a Growth Story to Watch?
  • Nominal & Real GDP (2 GDP Measures)
  • Profit Booking Strategies Explained
  • Money Market in India
  • Kajaria Ceramics vs Somany Ceramics vs Asian Granito
  • CRR vs SLR Comparison

Follow Us

  • YouTube
  • Facebook
  • LinkedIn
  • Twitter
  • Instagram

Yadnya Academy Pvt Ltd

  • A-2, Purva Apartments,
    3rd Floor, Off ITI Road,
    Aundh, Pune,
    Maharashtra - 411007
  • Contact Us :
    +91 902 296 4118 (9 AM to 7 PM IST)

Quick Links

  • Contact Us
  • Privacy Policy
  • FAQs
  • Disclaimer

© 2020 All Rights Reserved. Joint Venture Between Yadnya and JAWK Softwares

 

Loading Comments...