Table of Contents
Introduction
BGR Energy Systems Limited is a leading company operating in India, drawing its business in infrastructure and engineering industry with focus on power plant and other engineering systems. BGR Energy is of great interest among investors because of its capability to grow and its stability in the market. In this article, we will look at the fundamental and performance analysis of the company and also the shareholding pattern and the projected share price targets for the year 2024-2030.
About BGR Energy Systems Limited
BGR Energy was established in 1985 and has since been offering design, engineering, manufacturing and project management services making it the go to company in India’s energy industry.
Fundamentals of BGR Energy
| Key Metrics | Value |
| Market Capitalization | ₹1,000 Crore |
| P/E Ratio | 15 (Industry Avg: 20) |
| Debt-to-Equity Ratio | 1.2 |
| ROE (Return on Equity) | 12% |
| Dividend Yield | 1.5% |
The analysis of the basic financial ratios of BGR Energy reveals its financial stability along with the company’s P/E ratio is acceptable when compared with the key industry average. But analysing the debt to equity ratio it can be concluded that the company has higher leverage which should be the concern of investors.
Performance Overview
BGR Energy has recorded moderate growth in the recent past years in terms of performance. The company has established itself as a government contractor and it has received many contracts from the government; however, problems in the infrastructure segment have affected the earning. Nevertheless, the growth prospect is good in terms of revenues based on the ongoing government initiatives in the renewable sector and infrastructure in India.
Shareholding Pattern
| Category | Holding (%) |
| Promoters | 51.01% |
| FIIs (Foreign) | 0.15% |
| DIIs (Domestic) | 0.26% |
| Retail Investors | 48.58% |
Promoters own 51.01 % of the shares of RBL Bank and 58.82 % of promoter’s share have been pledged by September 2024. FIIs own a minimal 0.15% while DIIs own 0.26% of the total share. Individual investors own the largest stake of the remaining shares.
BGR Energy Share Price Target 2024 to 2030
| Year | Share Price Target (₹) |
| 2024 | 87 – 94 |
| 2025 | 105 – 120 |
| 2026 | 130 – 140 |
| 2027 | 150 – 160 |
| 2028 | 180 – 200 |
| 2029 | 220 – 230 |
| 2030 | 250 – 270 |
BGR Energy Share Price Target 2024
The government of India has planned to spend more on infrastructure and renewable energy; hence, BGR Energy in 2024 will have a high stock. The expected price target is ₹87 to ₹94, which includes a moderate growth rate.
| Year | Target |
| 2024 | ₹87 – 94 |
BGR Energy Share Price Target 2025
In the year 2025, there may be some threats which the company may encounter such as debt pressures. Nevertheless, the current projects could balance its future growth and bring the share price to ₹105 – ₹120 in a consolidation.
| Year | Target |
| 2025 | 105 – 120 |
BGR Energy Share Price Target 2026
In the fiscal year ending in 2026, the Company is expected to take off, especially given that the infrastructure segment may bounce back in the future. The share price target for the year is expected to be at ₹130 – 140, which also shows a progressive change.
| Year | Target |
| 2026 | 130 – 140 |
BGR Energy Share Price Target 2027
For the year 2027, BGR Energy may have variations in its performance depending on the economic factors at the international level and at the home front. However, this could be achieved through appropriate management of the project such that the stock could be expected to move in the band of ₹150 – 160
| Year | Target |
| 2027 | 150 – 160 |
BGR Energy Share Price Target 2028
By the year 2028, BGR Energy might bet on renewable energy segments and lowering the debt levels might make the stock touch ₹180 – 200. There are possibilities of positive change policies in the sector to drive growth.
| Year | Target |
| 2028 | 180 – 200 |
BGR Energy Share Price Target 2029
In operation efficiency in terms of revenue generation BGR Energy is expected to demonstrate higher efficiency by 2029. The share price target is expected to be in the region of ₹220 to 230 as there is a sign of bounce back for the stock and mainly due to positive sentiment among investors.
| Year | Target |
| 2029 | 220 – 230 |
BGR Energy Share Price Target 2030
BGR Energy could be one of the leading company in infrastructure and energy sector in 2030. The stock price is likely to be between ₹250 and 270 because of the good performance and sustainable development plans.
| Year | Traget |
| 2030 | 250 – 270 |
Technical Analysis
The stock of BGR Energy has resistance level of ₹114 by December 2024 and support level of ₹56. It is seen that the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators provide a mildly positive outlook for the long run investors.
Conclusion
The BGR Energy Systems Limited has a strong and growing organisational structure and prospects particularly given India’s more emphasis on infrastructure and renewable energy. Despite periods of volatility of the stock, there is a long-term bullish outlook for the stock. There is need for investors to look at the market position, changes in the firms’ affairs, and the macroeconomic factors.
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FAQs
Q1: Should one invest in BGR Energy for a longer term?
It was the same with BGR Energy which has good prospects for the long term but must be properly studied by investors in terms of the company’s performance indicators and market situation.
Q2: What do I stand to lose if I decide to invest in BGR Energy?
The main ones are high leverage and project timeline issues.
Q3: What strategies do BGR Energy ’s competitors use?
BGR Energy has a competitive advantage in turnkey solutions but it is a small fish in a pond full of other large competitors in the sector.
Disclaimer
The insights and predictions presented in this article are meant for educational and informational purposes only. They are not intended as a professional financial advice. You are advised to conduct your own analysis or consult with a professional trained in this field prior to making any investment decisions.
