Bharat Gears Limited (BHARATGEAR) AI Stock Analysis

• Market Cap: ₹1.77B
• Dividend Yield: N/A
• Average Volume (3M): 58.64K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.46
• Revenue Growth: 0.42%
• EPS Growth: N/A
• Country: IN
• Employees: 1,157
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 1.07
• Shares Outstanding: 15,355,058
• 10 Day Avg. Volume: 8,020
• 30 Day Avg. Volume: 58,637
• PEG Ratio: -0.24
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 2.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹119.00 ▲(8.82% Upside)

Bharat Gears Limited has a stable financial position with strong cash flow management, but high leverage and inconsistent revenue growth pose risks. Technical indicators show mixed momentum, and the valuation suggests the stock may be overvalued. The absence of a dividend yield further limits its appeal.

Bharat Gears Limited Business Overview & Revenue Model

Company Description

Bharat Gears Limited (BHARATGEAR) is a prominent manufacturer of automotive gears and transmission components in India. Established in 1962, the company operates primarily in the automotive sector, catering to various segments including passenger cars, commercial vehicles, and two-wheelers. With a focus on high-quality gear products, BHARATGEAR offers a range of components such as differential gears, transmission gears, and gearboxes, serving both domestic and international markets.

How the Company Makes Money

Bharat Gears Limited generates revenue primarily through the manufacturing and sale of automotive gears and related components. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and aftermarket suppliers, which constitute its key revenue streams. BHARATGEAR has established significant partnerships with major automotive players, allowing it to secure long-term contracts and a steady demand for its products. Additionally, the company may benefit from economies of scale and cost efficiencies in production, which enhance its profitability. Factors such as technological advancements, innovation in product design, and adherence to quality standards further contribute to its earnings, positioning it competitively in the automotive supply chain.

Bharat Gears Limited Financial Statement Overview

Summary

Bharat Gears Limited shows stable financial performance with strong cash flow and efficient cost management. However, high leverage and inconsistent revenue growth are potential risks. The company needs to stabilize profitability and reduce debt to enhance financial stability.

Income Statement

Bharat Gears Limited has shown a mixed performance in terms of revenue and profitability. The gross profit margin is strong, suggesting efficient cost management. However, the net profit margin has been volatile, with recent improvements after past losses. The EBIT and EBITDA margins suggest stable operational performance, though not exceptionally high. Revenue growth has been inconsistent, with recent declines indicating market challenges or competitive pressures.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio indicates a high level of leverage, which could pose risks if cash flows fluctuate. Return on equity has been inconsistent, impacted by fluctuations in net income. The equity ratio shows a reasonable proportion of assets funded by shareholders' equity, but there is room for improvement in reducing debt reliance.

Cash Flow

Cash flow analysis shows a positive trend, with free cash flow growth indicating effective cash management. The operating cash flow to net income ratio is favorable, suggesting cash earnings are supporting net income. The free cash flow to net income ratio further supports the company's ability to generate cash relative to its earnings, though improvements in net income stability would enhance long-term sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.61B	6.48B	6.45B	7.57B	7.20B	4.91B
Gross Profit	3.09B	3.04B	410.39M	561.60M	2.84B	2.03B
EBITDA	484.29M	446.46M	242.09M	519.48M	701.02M	354.06M
Net Income	66.44M	31.88M	-97.38M	134.85M	258.39M	-77.01M
Balance Sheet
Total Assets	0.00	3.64B	3.85B	4.07B	4.04B	3.84B
Cash, Cash Equivalents and Short-Term Investments	648.00K	104.13M	35.08M	3.79M	41.15M	18.56M
Total Debt	0.00	796.63M	1.13B	1.16B	1.07B	1.18B
Total Liabilities	-1.13B	2.52B	2.75B	2.87B	2.95B	3.10B
Stockholders Equity	1.13B	1.13B	1.11B	1.21B	1.08B	738.13M
Cash Flow
Free Cash Flow	0.00	350.25M	321.04M	159.58M	255.22M	548.91M
Operating Cash Flow	0.00	489.74M	465.95M	419.59M	302.79M	590.28M
Investing Cash Flow	0.00	22.99M	-131.48M	-262.55M	-49.57M	-22.47M
Financing Cash Flow	0.00	-510.44M	-374.55M	-28.02M	-322.21M	-567.05M

Bharat Gears Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 109.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BHARATGEAR, the sentiment is Neutral. The current price of 109.35 is below the 20-day moving average (MA) of 112.26, above the 50-day MA of 109.09, and above the 200-day MA of 90.03, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 46.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:BHARATGEAR.

Bharat Gears Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	76 Outperform	₹13.75B	13.10	―	0.95%	-4.65%	9.95%
TALBROAUTO	69 Neutral	₹17.95B	18.69	―	0.41%	3.71%	-15.16%
INDNIPPON	67 Neutral	₹21.36B	24.46	―	1.33%	17.61%	28.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BHARATGEAR	60 Neutral	₹1.77B	26.68	―	―	0.42%	―
HITECHGEAR	60 Neutral	₹14.53B	45.18	―	0.67%	-20.12%	-73.06%
RICOAUTO	52 Neutral	₹11.21B	34.99	―	0.62%	2.34%	-15.64%