Bharat Heavy Electricals Limited (BHEL.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-120.3%

-₹81.22

vs ₹399.65 price

Levered DCF

₹33.80

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

2.67

Grey zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	53.37×	138.36×	313.27×	37.26×	411.25×	-6.29×	-4.94×	27.42×
P/B	3.27×	2.98×	3.62×	1×	0.65×	0.65×	0.25×	0.89×
P/S	2.53×	2.69×	3.85×	1.1×	0.85×	1.04×	0.35×	0.94×
EV / EBITDA	25.45×	46.6×	78.1×	18.9×	18.66×	-7.42×	31.17×	11.29×
Gross margin	11.9%	31.1%	26.7%	26.4%	26.6%	27.2%	26.6%	34.1%
Operating margin	6.0%	3.0%	0.8%	0.4%	2.1%	-23.6%	-4.9%	4.7%
Net margin	4.7%	2.0%	1.2%	2.9%	2.2%	-16.6%	-7.2%	3.4%
Current ratio	1.59×	1.51×	1.36×	1.24×	1.3×	1.39×	1.44×	1.66×
Debt / equity	0.31×	0.36×	0.36×	0.22×	0.18×	0.19×	0.18×	0.09×
Interest coverage	2.68×	0.93×	0.25×	0.21×	1.44×	-11.82×	-2.4×	7.35×
Dividend yield	0.2%	0.1%	0.2%	0.6%	0.0%	0.0%	7.0%	2.4%
Payout ratio	10.9%	16.4%	49.4%	21.8%	0.1%	-0.0%	-34.4%	64.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	6.1%	2.2%	1.2%	2.6%	1.7%	-10.4%	-5.1%	3.3%
Return on invested capital	2.9%	1.2%	0.4%	0.2%	1.1%	-7.2%	-2.3%	1.7%
Return on assets	2.1%	0.8%	0.5%	1.1%	0.8%	-4.9%	-2.4%	1.6%
Free cash flow yield	6.1%	2.6%	-4.5%	-3.8%	2.9%	1.8%	-45.9%	-15.6%
Earnings yield	1.9%	0.7%	0.3%	2.6%	2.6%	-15.9%	-20.2%	3.6%
Enterprise value	₹817.3B	₹822.9B	₹955B	₹282.9B	₹212.8B	₹203.9B	₹109.2B	₹294B
Net debt / EBITDA	-1.15×	4.86×	5.84×	2.6×	3.59×	-1.25×	10.5×	0.7×
Cash conversion cycle (days)	108	295	262	144	183	318	294	190