Beardsell Limited

Industrials — Building Products & Equipment · NSE

₹23.00+₹0.49 (+2.18%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Beardsell Limited manufactures and supplies expanded polystyrene (EPS) products and prefabricated buildings for various industrial applications in India and internationally. It operates through two segments, Insulation and Trading.

IndustryBuilding Products & Equipment

SectorIndustrials

Annual revenue₹274 Cr

How does it make money?

Turns over ₹274 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation.

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?Some evidence

ROCE of 18.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +18% while net margin moved +14% 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+18%

Margin effect+14%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 12.4% is moderate

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

88/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

8.4x

3Y Median

14.4x

40 monthly readings · mean 14.5x · range 7.7x–24.7x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 42% below its 3y median of 14.4x. 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 91% below the peer median of 88.8x.

vs. its own history

Cheap

14.4x median over 40 months · -42%

vs. sector peers

Cheap

88.8x median of 3 peers · -91%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.1x

PEG

0.81

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 39% over 3 years.
Cash generation is improving
Free cash flow is up 784% over 3 years.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 21.3% to 18.3% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 39% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 42% 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 91% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹17 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 5.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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.

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

1EBITDA margin holds above 7%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.7% CAGR
Latest reported year was 10.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹91 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.4x

Cheap

Cheap against the generic band

P/B Ratio

0.99x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.73

Profitable

Profitable on a per-share basis

ROE

12.4%

Moderate

Moderate capital efficiency

ROCE

18.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

10.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-21.9%

Falling

Profits are shrinking

Dividend Yield

0.43%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.3%

Weak

Thin margins leave little room for error

Net Margin

3.8%

Average

Average bottom-line conversion

Current Ratio

1.35

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

23.1 / 24.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹231 Cr	₹245 Cr	₹267 Cr	₹274 Cr	+5.7%
EBITDA	₹21 Cr	₹24 Cr	₹24 Cr	₹26 Cr	+6.7%
EBITDA Margin	9.2%	9.8%	8.9%	9.5%	—
PAT (Net Profit)	₹8 Cr	₹8 Cr	₹10 Cr	₹11 Cr	+10.4%
EPS	₹2.27	₹2.1	₹2.49	₹2.93	+8.9%
ROE	14.5%	11.6%	12.1%	12.4%	—
ROCE	21.3%	20.6%	17.7%	18.3%	—
Total Debt	₹36 Cr	₹33 Cr	₹29 Cr	₹22 Cr	-15.1%
Free Cash Flow	₹2 Cr	₹2 Cr	₹10 Cr	₹17 Cr	+106.8%

🟢 Revenue has grown at 5.7% a year over 3 years.

🟢 EBITDA has grown at 6.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.5% over 3 years.

🟢 PAT (Net Profit) has grown at 10.4% a year over 3 years.

🟢 EPS has grown at 8.9% a year over 3 years.

🔴 ROE has fallen from 14.5% to 12.4% over 3 years (-2.0 pts).

🔴 ROCE has fallen from 21.3% to 18.3% over 3 years (-3.0 pts).

🟢 Total Debt has shrunk at 15.1% a year over 3 years.

🟢 Free Cash Flow has grown at 106.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹177 Cr

Total Liabilities

₹85 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹26 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.2%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

21 Sept 2026

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

6 general

Beardsell Ltd Share Price: Buy or Sell

Univest, 09 Sept

Beardsell Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

Compare with

Equitymaster, 14 Oct

Beardsell Share Price Forecast: 3 Year Outlook to 2030

Univest, 15 Jul

Further Upside For Beardsell Limited (NSE:BEARDSELL) Shares Could Introduce Price Risks After 28% Bounce

Simply Wall Street, 26 Sept

Beardsell Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 03 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth · Risk

WeakBusiness Quality · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑