This Data will Blow you Mind – Comparing stocks of Bharat Dynamics, Hindustan Aeronautics & Bharat Electronics !!

If you are an investor who is looking to buy a defence company or you already hold any of these companies stock, you need to carefully watch the above data points. Here we are comparing these three companies on the basis of book value, price to book, EPS, PE ratio, what is the sector PE and their ROC.

1. If you look at the absolute value of the stock, currently Bharat electronics is at 2:58 into any new investor. You would think that this is the company that have the lowest valuation and he will think of putting his money for Bharat electronics.
2. Book value of any company is the value of all the assets of the company and dividing that value with the number of outstanding shares. Hence what we get is the actual valuation of the asset of the company in the form of share. If you look that parameter Hindustan Aeronautics has the best book value of 352 but when we look at the price to book, we will have a different picture that comes in front of us.
3. Price to book suggest that both Bharat dynamics and Hindustan Aeronautics has reasonable book value which is around 13 and 14 respectively.
4. Earning per share is the earning of the company divided by the number of outstanding shares. So we get a figure that how much company earn against each of its share that is there, so if you see this parameter, we see that Hindustan Aeronautics has the highest EPS of 113.
5. PE ratio is the share price value divided by the EPS so what we get is the P/E ratio PE ratio tells us that how expensive is the company against its earning and against its sector. Average PE ratio of defence stock is around 50 and both Bharat dynamics and Bharat electronics have higher PE ratio than Hindustan Aeronautics.
   • Bharat dynamics has the highest PE ratio of 93. Its result are still awaited. So if the earning of the company would improve, we would see that this 93 the ratio will come down.
6. Return on capital employed is the parameter that tells us that how much company earns against the capital employed by the company and in this parameter both Hindustan Aeronautics and Bharat electronics have ROCE of over 25%.

When we compare these three companies against these key fundamental data points we see that Hindustan Aeronautics has the best numbers that supports the potential of further upside.

Disclaimer :- All the facts & the figure presented in the article are taken from internet and all the opinion presented in the article are authors personal opinion and this is not at all an investment suggestion. Before any buying and selling in the stock, please check with your investment advisor.