Balurghat Technologies Limited

Industrials — Integrated Freight & Logistics · BSE

₹12.75+₹0.40 (+3.24%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Balurghat Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Balurghat Technologies Limited provides transport services in India. It offers logistics solutions and supply chain services. The company is also involved in travel and tourism business; and sale of fuel through petrol pumps.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees42

Annual revenue₹120 Cr

How does it make money?

Turns over ₹120 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 42 employees supports ₹2.86 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.86 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +86% while net margin moved -78% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+86%

Margin effect-78%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.1% is weak
✗ ROE has fallen by 7.5 points over the period

Quality vs. Valuation

Company Quality

37/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

83/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

13.7x

3Y Median

20.1x

40 monthly readings · mean 21.9x · range 7.6x–53.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 32% below its 3y median of 20.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 85% below the peer median of 88.8x.

vs. its own history

Cheap

20.1x median over 40 months · -32%

vs. sector peers

Cheap

88.8x median of 3 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

14.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.6% to 3.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.9% to 13.0% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 2 high · 4 watch

🔴Debt has risen sharplyFinancial
Total debt is up 134% over 3 years, from ₹11 Cr to ₹27 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.7x to 1.4x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹7 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 60% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 32% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 85% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 5.3% to 2.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 8.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 10.6% to 3.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 17% a year✓ 23.0% CAGR
Latest reported year was 7.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 2.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 8.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.7x

Cheap

Cheap against the generic band

P/B Ratio

1.24x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.93

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.50x

Moderate

Moderate leverage

Revenue Growth (YoY)

7.7%

Modest

Modest growth

Profit Growth (YoY)

-74.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

1.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.81

Market-like

Moves roughly in line with the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

13.1 / 12.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹64 Cr	₹79 Cr	₹87 Cr	₹120 Cr	+23.0%
EBITDA	₹3 Cr	₹4 Cr	₹4 Cr	₹3 Cr	-3.0%
EBITDA Margin	5.3%	5.2%	4.9%	2.6%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-26.1%
EPS	₹0.78	₹1.41	₹1.21	₹0.32	-26.1%
ROE	10.6%	16.1%	12.1%	3.1%	—
ROCE	17.9%	21.1%	19.7%	13.0%	—
Total Debt	₹11 Cr	₹10 Cr	₹20 Cr	₹27 Cr	+32.8%
Free Cash Flow	₹3 Cr	₹1 Cr	-₹9 Cr	-₹7 Cr	—

🟢 Revenue has grown at 23.0% a year over 3 years.

🔴 EBITDA has shrunk at 3.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 5.3% to 2.6% over 3 years (-2.7 pts).

🔴 PAT (Net Profit) has shrunk at 26.1% a year over 3 years.

🔴 EPS has shrunk at 26.1% a year over 3 years.

🔴 ROE has fallen from 10.6% to 3.1% over 3 years (-7.5 pts).

🔴 ROCE has fallen from 17.9% to 13.0% over 3 years (-4.9 pts).

🔴 Total Debt has grown at 32.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹49 Cr

Total Liabilities

₹31 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

57.2%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

Balurghat Technologies reappoints Manik Chand Tater as independent director

scanx.trade, 14 Oct

Balurghat Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 11 Sept

Balurghat Technologies to re-appoint MD at 32nd AGM

scanx.trade, 17 Jul

Balurghat Technologies Ltd Share Price

Business Today, 31 Jan

Balurghat Technologies appoints Arpita Bose as company secretary

scanx.trade, 01 Sept

Q1 results: ABREL, Godrej, JSW Cement, FirstCry, and 693 more on Aug 13

Business Standard, 13 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

WeakBusiness Quality · Financial Health · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑