Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strategic capacity expansion and market opportunities.
Basis of our Recommendation
BBL is poised for growth, driven by strategic investments in manufacturing capacity and a positive outlook on the Indian economy. The new facility for power transformers aims to capitalize on government infrastructure projects and renewable energy initiatives. However, the company faces competitive pressures and macroeconomic risks that could impact profitability and execution.
Why We Like This Stock
- New manufacturing facility for power transformers to meet growing demand
- Expansion into high-efficiency electric motors aligns with government incentives
- Positive economic outlook in India supports sustained growth
Things To Watch Out For
- Intense competition in the electric motors segment affecting pricing
- Macroeconomic risks from geopolitical tensions leading to potential supply chain disruptions
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,872 | 1,902 | 2,274 | 2,639 | 3,125 |
| Profit Before Tax (Cr.) | 172 | 178 | 160 | 202 | 234 |
| PBT Margin | 9.2% | 9.4% | 7.0% | 7.6% | 7.5% |
| Net Profit (Cr.) | 129 | 134 | 119 | 150 | 174 |
| EPS | 113.4 | 117.6 | 104.5 | 131.5 | 152.7 |
Company Overview
Show Company Profile
Bharat Bijlee Limited operates as an electrical engineering company in India and internationally. It operates in two segments, Power Systems and Industrial Systems. The company is involved in the design, manufacture, commission, and marketing of power transformers; EPC projects for electrical substations, such as delivery, rectification, commissioning, and servicing of transformers; and marketing of maintenance products. It also develops, manufactures, and markets a range of standard and customized electric motors, including low and medium voltage motors, and SynchroVERT IE4 motors; and magnet technology machines, such as gearless belt machines for passenger lift, home elevators, and heavy-duty goods. In addition, the company engineers and supplies drives and automation systems, which include AC and Servo drive, and motion controllers. Further, the company undertakes turnkey projects, including switchyards. Bharat Bijlee Limited was incorporated in 1946 and is headquartered in Mumbai, India.