1. At a Glance
Bharat Bijlee is an OG of India’s electrical sector — older than Indian independence and still delivering volts, watts, and solid profits. With an ROE of 7%, a dividend payout of 30%, and an order book buzzing with switchyards and substations, BBL is quietly powering up… even if the market still thinks it’s just running on nostalgia.
2. Introduction with Hook
Imagine a 78-year-old doing CrossFit and yoga while running a transformer business. That’s Bharat Bijlee. It’s been around since Nehru’s time but doesn’t act its age.
With nearly ₹1,900 Cr in revenue, a clean balance sheet, and growing demand from India’s capex revival, this stock is suddenly more than a slow-moving electricals player.
- Stock CAGR (3 years): 60%
- EPS FY25: ₹118
- Book Value: ₹1,717
Yet — it’s trading at just 1.95x BV.
Welcome to the Benjamin Button of Indian manufacturing.
3. Business Model (WTF Do They Even Do?)
Bharat Bijlee is like a hybrid of Transformers (the movie) and Transformers (the product).
Core Segments:
- Power Systems: Distribution & power transformers
- Industrial Systems: LV motors, drives, automation
- Elevator Systems: Motors for lifts (yes, literally the things that lift you up)
- Electrical EPC: Turnkey projects for substations, HV/MV systems
- Drives & Automation: For industrial precision & performance
In short: if it spins, sparks, or lifts — BBL probably builds it.
4. Financials Overview
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,418 | 1,872 | 1,902 |
| EBITDA (₹ Cr) | 120 | 175 | 167 |
| EBITDA Margin (%) | 8.5% | 9.3% | 8.8% |
| Net Profit (₹ Cr) | 83 | 131 | 134 |
| EPS (₹) | 73.65 | 116.32 | 118.24 |
| Dividend Payout (%) | 27% | 30% | 30% |
Solid numbers from a company that prefers kilowatts to keywords.
5. Valuation
Let’s break this down with logic and no FOMO:
- CMP: ₹3,345
- EPS FY25: ₹118
- P/E: 28.3
- Book Value: ₹1,717 → CMP is just 1.95x BV
Comparable capital goods players are trading at 3–5x BV with lower dividend yields.
Fair Value Range: ₹3,700 – ₹4,400
(Blended P/E of 30x & P/B of 2.5x on improved FY26 outlook)
6. What’s Cooking – News, Triggers, Drama
- ICRA Reaffirmed Ratings: AA-/Stable. Credit confidence is high.
- Dividend Consistency: 30% payout for FY24 – rare among capex players.
- EHV Switchyard Projects: Big pipeline from infra, EV, and metro segments.
- Promoter Holding: Low at 33.69% but increasing FII/DII interest.
- Q1 Results Incoming: July 23 – expect solid orderbook visibility.
No masala. Just motors, megawatts, and margin math.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹6 Cr | ₹6 Cr | ₹6 Cr |
| Reserves | ₹1,372 Cr | ₹1,859 Cr | ₹1,936 Cr |
| Borrowings | ₹287 Cr | ₹150 Cr | ₹87 Cr |
| Total Liabilities | ₹2,052 Cr | ₹2,505 Cr | ₹2,622 Cr |
| Investments | ₹890 Cr | ₹1,324 Cr | ₹1,341 Cr |
| Fixed Assets + CWIP | ₹110 Cr | ₹133 Cr | ₹143 Cr |
Takeaway: They build transformers, but are transforming their balance sheet even faster.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | ₹52 | -₹10 | -₹31 | ₹11 |
| FY24 | ₹241 | -₹52 | -₹182 | ₹7 |
| FY25 | ₹175 | -₹54 | -₹123 | -₹2 |
Operating cash flow like a boss. The rest? Deployment and dividends.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 9% | 11% | 9% |
| ROE | 7% | 7.2% | 7.0% |
| EBITDA Margin | 8.5% | 9.3% | 8.8% |
| Cash Conv. Cycle | 145 | 89 | 84 |
| Debt/Equity | 0.21x | 0.08x | 0.04x |
Slow and steady, but definitely not stressy. Could use some ROE protein shakes though.
10. P&L Breakdown – Show Me the Money
| Year | Sales | EBITDA | PAT | EPS | OPM % |
|---|---|---|---|---|---|
| FY23 | ₹1,418 Cr | ₹120 Cr | ₹83 Cr | ₹73.65 | 8.5% |
| FY24 | ₹1,872 Cr | ₹175 Cr | ₹131 Cr | ₹116.32 | 9.3% |
| FY25 | ₹1,902 Cr | ₹167 Cr | ₹134 Cr | ₹118.24 | 8.8% |
YoY profit growth slowing a bit, but fundamentals remain tight and tidy.
11. Peer Comparison
| Company | P/E | ROE | ROCE | Sales (Cr) | PAT (Cr) | CMP/BV |
|---|---|---|---|---|---|---|
| Waaree Energies | 50.5 | 27.6 | 35.1 | ₹14,444 | ₹1,870 | 9.9 |
| Apar Industries | 44.1 | 19.6 | 32.1 | ₹18,581 | ₹821 | 8.0 |
| Shilchar Tech | 42.2 | 52.8 | 71.1 | ₹623 | ₹147 | 17.8 |
| Bharat Bijlee | 28.3 | 7.0 | 9.4 | ₹1,902 | ₹134 | 1.95 |
BBL has one of the lowest valuations — but also lowest ROEs. You’re paying for safety, not sizzle.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 33.69% (surprisingly low for an Indian manufacturing play)
- DIIs: Up from 5.04% (2023) → 17.34% (2025)
- FIIs: 0.63% → 3.79%
- Public: 45%
- Shareholders: 43,518 (June 2025)
Key trend: Institutions have finally noticed this old-timer.
13. EduInvesting Verdict™
Bharat Bijlee is like that quiet uncle at family functions who never brags — but turns out he owns half the block. This isn’t a momentum stock. It’s a base-building, transformer-installing, dividend-payout giving, cash-flow-generating veteran with a future in India’s infra story.
Not flashy. But functional. And in electricals, that’s a good thing.
Metadata
– Written by EduInvesting Research Team | 17 July 2025
– Tags: Bharat Bijlee, Capital Goods, Transformers, Electrification, Dividend Yield, Old-School Multibagger, Infra Beneficiary, Power Sector Stock
