Bharat Gears Limited (BHARATGEAR) AI Stock Analysis

• Market Cap: ₹1.51B
• Dividend Yield: N/A
• Average Volume (3M): 58.64K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.67
• Revenue Growth: 8.90%
• EPS Growth: -93.55%
• Country: IN
• Employees: 1,157
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 1.67
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹103.00 ▼(-6.75% Downside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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.

Positive Factors

Free Cash Flow

Sustained free cash flow growth indicates the business converts earnings to cash reliably, enabling reinvestment in tooling, capex, and debt reduction. Over 2–6 months this improves financial flexibility, funds working capital needs in cyclic auto cycles, and supports strategic investments.

Operational Margin Strength

Consistently strong gross margins reflect efficient manufacturing and cost controls in precision gear production. This structural advantage supports pricing power with OEMs, cushions against raw-material swings, and helps sustain EBIT/EBITDA margins across product cycles and model changes.

OEM & Manufacturing Position

A core OEM supply role and in-house precision machining, heat treatment and inspection create high entry barriers and recurring contracted volumes. These capabilities anchor long-term relationships, support predictable order pipelines, and diversify revenue across OEM and aftermarket channels.

Negative Factors

High Leverage

Material leverage reduces financial headroom and raises interest-service risk during industry downturns. With cyclical OEM demand, high debt constrains capital allocation choices, limits ability to absorb shocks, and can delay strategic investments or dividend initiation over the medium term.

Inconsistent Revenue Growth

Volatile top-line trends indicate exposure to OEM program timing and replacement-cycle variability. Inconsistent revenue complicates capacity planning and weakens predictability of margins and cash flows, making it harder to sustain steady profitability and execute multi-period investment plans.

Volatile Returns on Equity

Erratic ROE signals uneven capital efficiency and profitability, reflecting swings in net income. For long-term investors, inconsistent ROE undermines confidence in management's ability to deploy capital effectively and to steadily improve shareholder returns or deleveraging outcomes.

Bharat Gears Limited Business Overview & Revenue Model

Company Description

Bharat Gears Limited manufactures and supplies automotive gears in India, the United States, Mexico, Spain, and internationally. The company operates through Gears, Automotive Components, and Furnaces segments. It offers gear products, such as ring gears and pinions, transmission gears and shafts, differential gears, and gear boxes; and heat treatment furnaces and equipment, such as endothermic gas generators, rotary hearth atmosphere hardening, conveyor and pusher type furnace lines, sealed quench furnace lines, and pusher continuous gas carburising furnaces for utility vehicles, tractors, and off highway vehicles, as well as heavy, medium, and light trucks. The company also provides automotive components, including crown wheel pinions, transmission gears, straight bevel parts, steering components, fly wheel assemblies and rings, axle shafts, ceramic buttons, cover assemblies, lever and spring kits, clutch components, differential cages, propeller shaft components, crankshafts, turbo charger kits, and turbos charger core and rotor products. It serves original equipment manufacturers. Bharat Gears Limited was incorporated in 1971 and is based in Mumbai, India.

How the Company Makes Money

Bharat Gears makes money primarily by manufacturing and selling gears and gear-related drivetrain components. Its core revenue stream comes from supplying these components to OEM customers as part of vehicle production programs, where earnings are driven by contracted supply volumes, part pricing, and ongoing model/platform demand. A secondary revenue stream comes from sales into the aftermarket/replacement segment, where the company sells replacement gears and related parts through distribution channels; this revenue is influenced by vehicle parc size, wear-and-tear replacement cycles, and channel reach. Additional earnings can come from providing value-added manufacturing services embedded in component sales (such as precision machining, heat treatment, and quality/inspection processes) where customers pay through the overall part price for meeting tight performance and durability specifications. Specific customer names, partnership arrangements, and revenue mix by segment are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.01B	6.48B	6.45B	7.57B	7.20B	4.91B
Gross Profit	2.90B	3.04B	410.39M	561.60M	2.84B	2.03B
EBITDA	415.12M	446.46M	242.09M	519.48M	701.02M	354.06M
Net Income	2.87M	31.88M	-97.38M	134.85M	258.39M	-77.01M
Balance Sheet
Total Assets	4.05B	3.64B	3.85B	4.07B	4.04B	3.84B
Cash, Cash Equivalents and Short-Term Investments	139.25M	104.13M	35.08M	3.79M	41.15M	18.56M
Total Debt	786.27M	796.63M	1.13B	1.16B	1.07B	1.18B
Total Liabilities	2.83B	2.52B	2.75B	2.87B	2.95B	3.10B
Stockholders Equity	1.22B	1.13B	1.11B	1.21B	1.08B	738.13M
Cash Flow
Free Cash Flow	116.17M	350.25M	321.04M	159.58M	255.22M	548.91M
Operating Cash Flow	170.91M	489.74M	465.95M	419.59M	302.79M	590.28M
Investing Cash Flow	-80.59M	22.99M	-131.48M	-262.55M	-49.57M	-22.47M
Financing Cash Flow	-177.06M	-510.44M	-374.55M	-28.02M	-322.21M	-567.05M

Bharat Gears Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 110.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 110.45 is above the 20-day moving average (MA) of 103.04, above the 50-day MA of 107.95, and above the 200-day MA of 103.10, indicating a bearish trend. The MACD of -3.71 indicates Positive momentum. The RSI at 38.44 is Neutral, neither overbought nor oversold. The STOCH value of 33.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	72 Outperform	₹16.07B	10.02	―	0.95%	-4.65%	9.95%
TALBROAUTO	65 Neutral	₹14.61B	15.60	―	0.32%	0.74%	-17.90%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BHARATGEAR	60 Neutral	₹1.51B	16.31	―	―	8.90%	-93.55%
HITECHGEAR	60 Neutral	₹11.38B	378.45	―	0.74%	-17.86%	-49.46%
RICOAUTO	60 Neutral	₹14.79B	42.56	―	0.39%	3.68%	14.13%
INDNIPPON	58 Neutral	₹16.67B	18.47	―	1.57%	22.67%	24.50%

Bharat Gears Limited Corporate Events

Bharat Gears Files SEBI Demat Compliance Certificate for December Quarter

Bharat Gears Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended December 31, 2025, confirming proper handling of its dematerialised securities. Its registrar and share transfer agent, MUFG Intime India Private Limited, has certified that all securities received for dematerialisation during the quarter were duly verified, accepted or rejected, mutilated and cancelled where applicable, and that corresponding entries were made in the register of members and listed on the relevant stock exchanges within prescribed timelines, underscoring the company’s adherence to securities market regulations and governance standards.