Bedmutha Industries Limited

Basic Materials — Steel · NSE

₹111.28−₹0.97 (−0.86%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

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. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bedmutha Industries Limited engages in the manufacture and export of steel wire and wire products in India. The company operates through Steel, Copper, EPC Projects, and other segments.

IndustrySteel

SectorBasic Materials

Employees582

Annual revenue₹1,439 Cr

How does it make money?

Turns over ₹1,439 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 582 employees supports ₹2.47 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.47 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 9.1% 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 ROE10.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +112% while net margin moved -76% 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+112%

Margin effect-76%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 9.1% is below 10% — capital is not working hard
✗ ROCE has fallen by 6.5 points — returns are eroding
✗ EBITDA margin of 4.0% is thin — little cushion if costs rise
✗ Net margin of 1.0% is slim
• Revenue has compounded at 28.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

72/ 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

21.4x

3Y Median

29.7x

40 monthly readings · mean 33.0x · range 12.9x–75.1x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 29.7x. 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 18% above the peer median of 18.2x.

vs. its own history

Cheap

29.7x median over 40 months · -28%

vs. sector peers

Fair

18.2x median of 4 peers · +18%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 53% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 13.1% to 4.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.6% to 9.1% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.0 points, from 11.0% to 4.0%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.8x to 1.2x.
🟡Profit is decliningFinancial
Net profit is down 50% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 53% 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 28% 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.
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 11.0% to 4.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 13.1% to 4.3%. 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 21% a year✓ 28.5% CAGR
Latest reported year was 74.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹60 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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 · 6 neutral · 2 weak

Market Cap

₹359 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.36x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.19

Profitable

Profitable on a per-share basis

ROE

4.3%

Weak

Weak capital efficiency

ROCE

9.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.37x

Moderate

Moderate leverage

Revenue Growth (YoY)

74.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-73.8%

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

₹60 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.9%

Weak

Thin margins leave little room for error

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

107.9 / 108.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹679 Cr	₹805 Cr	₹1,041 Cr	₹1,439 Cr	+28.5%
EBITDA	₹75 Cr	₹78 Cr	₹75 Cr	₹57 Cr	-8.4%
EBITDA Margin	11.0%	9.7%	7.2%	4.0%	—
PAT (Net Profit)	₹13 Cr	₹21 Cr	₹25 Cr	₹7 Cr	-20.6%
EPS	₹4.03	₹6.49	₹7.69	₹2.01	-20.7%
ROE	13.1%	17.4%	17.1%	4.3%	—
ROCE	15.6%	16.5%	15.1%	9.1%	—
Total Debt	₹154 Cr	₹126 Cr	₹96 Cr	₹73 Cr	-22.1%
Free Cash Flow	₹63 Cr	₹45 Cr	₹53 Cr	₹60 Cr	-1.9%

🟢 Revenue has grown at 28.5% a year over 3 years.

🔴 EBITDA has shrunk at 8.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.0% to 4.0% over 3 years (-7.0 pts).

🔴 PAT (Net Profit) has shrunk at 20.6% a year over 3 years.

🔴 EPS has shrunk at 20.7% a year over 3 years.

🔴 ROE has fallen from 13.1% to 4.3% over 3 years (-8.8 pts).

🔴 ROCE has fallen from 15.6% to 9.1% over 3 years (-6.5 pts).

🟢 Total Debt has shrunk at 22.1% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-1.9% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹726 Cr

Total Liabilities

₹574 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹158 Cr

Capex

-₹99 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.0%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive1 mixed4 general

Bedmutha Industries FY26 results: Revenue up 40%, net profit down 72%

scanx.trade, 13 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Bedmutha Industries closes trading window ahead of Q2FY27 results

scanx.trade, 30 SeptResults

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

Bedmutha Industries Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 25 Sept

Bedmutha Industries Limited (533270) Company Information

Simply Wall Street, 09 Aug

Bedmutha Industries: Best Stock in Its Sector? Key Metrics

Univest, 24 Sept

Bedmutha Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Watch Items

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

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Growth · Risk

WeakBusiness Quality · Profitability

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.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑