Operating Margin

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Price: 412.8 INR -0.01% Market Closed

Market Cap: 54 660.5T INR

27.6%

Improving

by 3.9%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

27.6%

Operating Income

₹69.3B

Revenue

₹251.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

27.6%

Operating Income

₹69.3B

Revenue

₹251.5B

Peer Comparison

Country	Company	Market Cap	Operating Margin
IN	Bharat Electronics Ltd NSE:BEL	3T INR	Loading...
US	RTX Corp LSE:0R2N	271.4B USD	Loading...
US	Raytheon Technologies Corp NYSE:RTX	271B USD	Loading...
NL	Airbus SE PAR:AIR	163.5B EUR	Loading...
US	Boeing Co NYSE:BA	186.1B USD	Loading...
FR	Safran SA PAR:SAF	132.5B EUR	Loading...
UK	Rolls-Royce Holdings PLC LSE:RR	107.4B GBP	Loading...
US	Lockheed Martin Corp NYSE:LMT	134.1B USD	Loading...
DE	Rheinmetall AG XETRA:RHM	87.7B EUR	Loading...
US	General Dynamics Corp NYSE:GD	99.3B USD	Loading...
US	Northrop Grumman Corp NYSE:NOC	96.2B USD	Loading...

Market Distribution

Min	-153 833.3%
30th Percentile	2.7%
Median	7.3%
70th Percentile	13.2%
Max	9 977%

Other Profitability Ratios

Bharat Electronics Ltd
Glance View

Economic Moat

Narrow

Market Cap

54 660.5T INR

Industry

Aerospace & Defense

Bharat Electronics Limited (BEL), a key player in the Indian public sector, stands as a testament to strategic innovation and national pride. Founded in 1954, BEL has its roots deeply embedded in the defense arena, where it was established to meet the nation’s evolving needs for military communication equipment. As the world stepped aggressively into the digital age, BEL adeptly expanded its horizons beyond defense, branching into diverse domains such as aerospace, homeland security, and electronic voting systems. This expansion narrative reflects BEL's agility in leveraging its robust R&D foundation, made possible by its network of laboratories and its symbiotic relationship with the Indian Armed Forces. Through a vertical integration approach, BEL not only manufactures but also develops cutting-edge technology, ensuring its place at the forefront of innovation. The company's business model thrives on a dual-pronged strategy: catering to government contracts, which are its core revenue stream, and fostering its non-defense verticals that capitalize on emerging market demands. Contributing significantly to India's self-reliance in defense production, BEL’s portfolio features radars, sonars, electronic warfare systems, and communication equipment tailored to the needs of the military. Parallelly, its foray into the civilian market involves products like solar power systems and other civic infrastructure solutions, indicating a nimble maneuvering to tap into sustainable energy trends and smart city projects. This diversified trajectory not only anchors BEL's financial health but also fortifies its reputation as a steward of technology serving both defense and civilian spheres.

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BEL Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Bharat Electronics Ltd
BSE:500049

Peer Comparison

Market Distribution

Other Profitability Ratios

Bharat Electronics Ltd
Glance View

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Bharat Electronics Ltd BSE:500049