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Bharat Gears Limited (BHARATGEAR) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹2.0B

BG Bharat Gears Limited BHARATGEAR · NSE
Price₹103.62
Fair Value₹67.69
Upside-34.7%
Quality61/100
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Mixed Growth
Thin margins · 2.1% net margin
Low debt · generates free cash flow
Ranks above peers (9/13)
Narrow moat 39/100
Evidence: High Range ₹38.02 – ₹98.99 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 11 days ago

Fair value updated Aug 2, 2026, revised from ₹216.71 to ₹67.69 (−68.8%) since Jun 29, 2026. Share price −16.0% over the past month.

A solid business, but screening 35% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹98.99). The favourable scenario is already priced in.
  • The model range is unusually wide (₹38.02 to ₹98.99). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹167.53 ₹46.21 Fair Value ₹67.69 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹46.21 – ₹167.53 · fair‑value band ₹38.02 – ₹98.99 · the ₹103.62 price screens above the ₹67.69 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Bharat Gears Limited (BHARATGEAR) currently trades at ₹103.62, while our model-based Fair Value estimate is ₹67.69, implying the stock looks roughly 34.7% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Bharat Gears Limited generated revenue of ₹7.8B at a net margin of 2.1%. Revenue grew 20.3% year over year. It earns a return on equity of 13.5%. Net debt stands at ₹652M. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹38.02 (bear case) to ₹98.99 (bull case); at ₹103.62, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 33% below its 52-week high and 24% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at -35%, BHARATGEAR screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹52.09 ₹78.64 ₹115.14 80
Residual Income ₹78.79 ₹95.55 ₹225.68 76
Rev-Margin DCF ₹121.59 ₹215.29 ₹322.15 74
All 26 models by family
DCF Models
FCF DCF ₹51.30 ₹81.50 ₹125.78 38
Owner Earnings ₹191.63 ₹295.59 ₹447.97 31
5Y Revenue Exit ₹121.59 ₹217.31 ₹341.44 39
5Y EBITDA Exit ₹188.42 ₹342.39 ₹524.11 41
5Y P/E Exit ₹115.23 ₹205.41 ₹300.62 38
10Y Revenue Exit ₹89.41 ₹169.26 ₹279.49 36
10Y EBITDA Exit ₹136.21 ₹254.18 ₹415.84 37
10Y P/E Exit ₹90.58 ₹161.18 ₹249.01 35
Earnings-Based
Graham-Dodd ₹73.09 ₹228.27 ₹303.69 54
Lynch FV ₹49.73 ₹71.05 ₹92.36 50
PEG = 1.0 ₹49.73 ₹71.05 ₹92.36 46
EPV ₹136.99 ₹159.59 ₹179.09 59
Dividend Discount
Gordon GGM ₹0.0100 ₹0.0200 ₹0.0300 70
DDM Multi-Stage ₹0.0100 ₹0.0100 ₹0.0200 61
Multiples
P/E Multiple ₹177.35 ₹236.46 ₹295.58 63
P/S Multiple ₹137.04 ₹182.72 ₹228.40 58
P/B Multiple ₹137.04 ₹182.72 ₹228.40 55
EV/EBIT ₹254.91 ₹341.93 ₹428.96 53
EV/EBITDA ₹300.17 ₹402.28 ₹504.40 54
EV/Revenue ₹169.81 ₹245.24 ₹320.66 43
Asset-Based
NCAV (Graham) ₹42.72 ₹57.24 ₹85.44 50
Growth DCF
Growth DCF ₹52.09 ₹78.64 ₹115.14 80
Rev-Margin DCF ₹121.59 ₹215.29 ₹322.15 74
Economic Profit
Residual Income ₹78.79 ₹95.55 ₹225.68 76
ROIC Compounder ₹145.97 ₹184.75 ₹230.11 72
Growth Earnings
Growth-Adj P/E ₹146.10 ₹208.72 ₹271.34 68

Widest divergence: Multiples (₹236.46) versus Dividend Discount (₹0.0100). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹7.8B
Revenue growth (YoY) +20.3%
Net margin 2.1%
Return on equity 13.5%
Free cash flow ₹81.7M FY2026
P/E ratio 12.1
More key figures
Operating margin 3.9%
EPS (TTM) ₹10.75
EPS growth (YoY) +196%
Net debt ₹652M FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 58 · Market factors (momentum, volatility) 45

Profitability 61
Margins and returns on capital today
Quality Growth 63
Are margins and returns improving?
Cashflow 25
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 38
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Bharat Gears Limited manufactures and supplies automotive gear in India, the United States, Mexico, Spain, and internationally.

Full company description

Bharat Gears Limited manufactures and supplies automotive gear in India, the United States, Mexico, Spain, and internationally. The company offers gear products, such as ring gears, pinions, transmission gears, shafts, differential gears, and bevel gears; automotive components, including automotive clutch assemblies and components, turbochargers and related parts, driveline products, axle shafts, flywheel assemblies and rings, propeller shaft components, U-J Cross, steering components, differential cages, steel wheel rims, turbocharger core and rotor, ST. Bevel, ceramic button, and break lining; heat-treating furnaces; and precision machined components, shafts, fasteners, gears, castings, and forgings. It also provides single/multi-row pusher carburisng furnaces, rotary hearth furnaces, other heat-treating equipment and systems, and capabilities; and other heat-treating equipment and systems, such as conveyor mesh belt furnace lines, rotary retort furnaces, pusher furnaces for general applications, automation and handling systems, atmosphere systems, endothermic gas generators, and process control/ SCADA systems. It serves original equipment manufacturers, as well as the automotive, agriculture, construction, utilities, and EV segments. Bharat Gears Limited was incorporated in 1971 and is headquartered in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Bharat Gears Limited reported revenue of ₹7.8B in FY2026 versus ₹7.2B in FY2022, a compound +2.1%/yr. Reported net income was ₹165M in FY2026, compounding −10.6%/yr from FY2022.

Growth Quality 71/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹7.8B
Latest YoY
+21.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.8%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.2%
Revenue +2.1%/yr
FY22 ₹7.2B
FY23 ₹7.6B
FY24 ₹6.4B
FY25 ₹6.5B
FY26 ₹7.8B
Net income −10.6%/yr
FY22 ₹258M
FY23 ₹135M
FY24 −₹97.4M
FY25 ₹31.9M
FY26 ₹165M

BHARATGEAR screens 35% overvalued. Compare with Hyundai Mobis Co →

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Cite: Fair Value Calculator (2026). "Bharat Gears Limited Fair Value". https://www.fairvalue-calculator.com/stock/BHARATGEAR

Peer Group

Auto Parts · 643 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Top 25%
Fair Value upside −35% · Below median
Return on equity (TTM) 14% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth 20% · Top 25%
Debt / equity 0.13× · Higher than median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 12.1× · Cheaper than 75% of peers
P/B 1.53× · Cheaper than median
P/S (TTM) 0.26× · Cheaper than 75% of peers
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 4.0× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 17
FUTURE 100 · sector 24
PAST 54 · sector 26
HEALTH 93 · sector 95
DIVIDEND 0 · sector 30

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Hyundai Mobis Co 012330 482,000 KRW 678,420 KRW +41%
Magna International Inc MGAN 1,122 MXN 1,172 MXN +4%
Samvardhana Motherson International Limited MOTHERSON ₹144.17 ₹80.63 -44%
Bosch Limited BOSCHLTD ₹41,110 ₹14,004 -66%
Bharat Forge Limited BHARATFORG ₹2,117 ₹441.74 -79%
Uno Minda Limited UNOMINDA ₹1,158 ₹426.57 -63%
Schaeffler India Limited SCHAEFFLER ₹4,135 ₹1,412 -66%
Hankook Tire & Technology Co 161390 73,600 KRW 196,479 KRW +167%
MRF Limited MRF ₹131,025 ₹125,849 -4%
Sona BLW Precision Forgings Limited SONACOMS ₹792.00 ₹207.06 -74%

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Frequently asked questions

Is Bharat Gears Limited (BHARATGEAR) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹67.69 versus a price of ₹103.62, about −35% (overvalued).
What is the fair value of BHARATGEAR?
Our model-based fair value for Bharat Gears Limited is ₹67.69 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹103.62.
What is the quality score of BHARATGEAR?
Bharat Gears Limited has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Bharat Gears Limited (BHARATGEAR)?
Bharat Gears Limited reported trailing-twelve-month revenue of about ₹7.8B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of BHARATGEAR?
The net profit margin of Bharat Gears Limited is about 2.1%, meaning it keeps roughly 2.1% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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