Bharat Bijlee Limited

Industrials — Electrical Equipment & Parts · NSE

₹2,448.10−₹60.50 (−2.41%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Bharat Bijlee Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bharat Bijlee Limited operates as an electrical engineering company in India and internationally. It operates through Power Systems and Industrial Systems segments.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees1,197

Annual revenue₹2,257 Cr

How does it make money?

Turns over ₹2,257 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 1,197 employees supports ₹1.89 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.89 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +61% while net margin moved -10% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+61%

Margin effect-10%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.9% is weak

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

61/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

24.7x

3Y Median

25.6x

40 monthly readings · mean 30.7x · range 17.5x–68.3x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 25.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 72% below the peer median of 88.8x.

vs. its own history

Fair

25.6x median over 40 months · -3%

vs. sector peers

Cheap

88.8x median of 3 peers · -72%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.8x

PEG

1.90

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 10.3% to 8.6% over 3 years.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹206 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 72% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 10.3% to 8.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.1% CAGR
Latest reported year was 17.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹206 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 8.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹2,767 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.36x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹98.95

Profitable

Profitable on a per-share basis

ROE

5.9%

Weak

Weak capital efficiency

ROCE

8.0%

Weak

Low return on total capital employed

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

17.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-29.6%

Falling

Profits are shrinking

Dividend Yield

1.43%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹206 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

57.6x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

1.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2203.9 / 2261.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

70.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,405 Cr	₹1,863 Cr	₹1,888 Cr	₹2,257 Cr	+17.1%
EBITDA	₹145 Cr	₹204 Cr	₹206 Cr	₹194 Cr	+10.2%
EBITDA Margin	10.3%	11.0%	10.9%	8.6%	—
PAT (Net Profit)	₹83 Cr	₹131 Cr	₹134 Cr	₹120 Cr	+13.0%
EPS	₹73.63	₹116.29	₹118.24	₹106.24	+13.0%
ROE	6.0%	7.0%	6.9%	5.9%	—
ROCE	9.2%	9.7%	9.1%	8.0%	—
Total Debt	₹295 Cr	₹158 Cr	₹87 Cr	₹307 Cr	+1.3%
Free Cash Flow	₹36 Cr	₹207 Cr	₹140 Cr	-₹206 Cr	—

🟢 Revenue has grown at 17.1% a year over 3 years.

🟢 EBITDA has grown at 10.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.3% to 8.6% over 3 years (-1.7 pts).

🟢 PAT (Net Profit) has grown at 13.0% a year over 3 years.

🟢 EPS has grown at 13.0% a year over 3 years.

🟡 ROE has held roughly flat at 5.9% over 3 years.

🔴 ROCE has fallen from 9.2% to 8.0% over 3 years (-1.3 pts).

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

🔴 Free Cash Flow has turned negative, from ₹36 Cr to -₹206 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,112 Cr

Total Liabilities

₹1,083 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹93 Cr

Capex

-₹113 Cr

Shareholding (proxy)

Institutional Holding

16.0%

Insider Holding

35.9%

Corporate Actions

Dividend Rate

₹35

Ex-Dividend Date

15 Jul 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 positive1 negative3 general

Bharat Bijlee Share Price: price action near yearly low

Univest, 07 Oct

Bharat Bijlee Share Price Falls 7% As Q1 Net Profit Falls 30%, Revenue Surges 18%

NDTV Profit, 04 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Bharat Bijlee approves ₹35 dividend, faces institutional pushback on director reappointments

scanx.trade, 23 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Bharat Bijlee (NSE:BBL) Could Easily Take On More Debt

Simply Wall Street, 06 Feb

Bharat Bijlee Q4 Net Profit Drops 21.8% To ₹39.3 Crore On High Operational Costs

Sahi, 12 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Bharat Bijlee (BBL.NS) Slips 1.87% to ₹2319.2; Key Support at ₹2203.24 in Focus - High Beta Stocks

https://www.siam.in/, 01 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingRisk

WeakBusiness Quality · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑