Discounted Cash Flow (DCF) Analysis Unlevered

Bharat Electronics Limited (BEL.NS)

93.1 ₹

+2.15 (+2.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 132.27 | 93.1 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	100,775.90	118,547	126,365.80	138,497.10	150,847.40	166,968.21	184,811.82	204,562.34	226,423.57	250,621.07
Revenue (%)
EBITDA	22,549.20	30,171.10	28,844.40	33,645.10	36,168.30	39,712.45	43,956.45	48,654	53,853.58	59,608.82
EBITDA (%)
EBIT	19,832	26,789.80	25,125.80	29,771.90	32,157	35,055.02	38,801.29	42,947.92	47,537.69	52,617.96
EBIT (%)
Depreciation	2,717.20	3,381.30	3,718.60	3,873.20	4,011.30	4,657.43	5,155.16	5,706.09	6,315.89	6,990.86
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	8,535.60	9,249.20	16,762.40	50,871.40	137,758.50	52,625.41	58,249.40	64,474.41	71,364.68	78,991.30
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	46,157.60	44,433.50	39,583	49,679.80	55,919	62,629.33	69,322.42	76,730.79	84,930.88	94,007.30
Inventories (%)
Accounts Payable	15,331.80	15,872	25,907.30	35,077	28,069.40	31,069.13	34,389.44	38,064.58	42,132.47	46,635.10
Accounts Payable (%)
Capital Expenditure	-8,071.10	-7,614.20	-7,465.80	-4,692.50	-5,545.60	-9,151.34	-10,129.33	-11,211.83	-12,410.02	-13,736.26
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 93.1
Beta	0.253
Diluted Shares Outstanding	7,309.78
Cost of Debt
Tax Rate	24.24
After-tax Cost of Debt	3.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.543
Total Debt	-
Total Equity	680,540.41
Total Capital	680,540.41
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	100,775.90	118,547	126,365.80	138,497.10	150,847.40	166,968.21	184,811.82	204,562.34	226,423.57	250,621.07
EBITDA	22,549.20	30,171.10	28,844.40	33,645.10	36,168.30	39,712.45	43,956.45	48,654	53,853.58	59,608.82
EBIT	19,832	26,789.80	25,125.80	29,771.90	32,157	35,055.02	38,801.29	42,947.92	47,537.69	52,617.96
Tax Rate	27.72%	28.23%	26.41%	28.65%	24.24%	27.05%	27.05%	27.05%	27.05%	27.05%
EBIAT	14,334.47	19,227.45	18,490.03	21,242.05	24,363.43	25,572.93	28,305.87	31,330.87	34,679.14	38,385.24
Depreciation	2,717.20	3,381.30	3,718.60	3,873.20	4,011.30	4,657.43	5,155.16	5,706.09	6,315.89	6,990.86
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	1,724.10	4,850.50	-10,096.80	-6,239.20	-6,710.33	-6,693.09	-7,408.37	-8,200.09	-9,076.42
Accounts Payable	-	540.20	10,035.30	9,169.70	-7,007.60	2,999.73	3,320.31	3,675.14	4,067.90	4,502.63
Capital Expenditure	-8,071.10	-7,614.20	-7,465.80	-4,692.50	-5,545.60	-9,151.34	-10,129.33	-11,211.83	-12,410.02	-13,736.26
UFCF	8,980.58	17,258.85	29,628.63	19,495.65	9,582.33	17,368.42	19,958.92	22,091.89	24,452.82	27,066.05
WACC
PV UFCF						16,614.14	18,262.99	19,336.84	20,473.82	21,677.66
SUM PV UFCF										96,365.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.54
Free cash flow (t + 1)	27,607.37
Terminal Value	1,086,904.20
Present Value of Terminal Value	870,520.07

Intrinsic Value

Enterprise Value	966,885.51
Net Debt	-
Equity Value	966,885.51
Shares Outstanding	7,309.78
Equity Value Per Share	132.27