Bemco Hydraulics Limited

Industrials — Specialty Industrial Machinery · BSE

₹100.75+₹1.51 (+1.52%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bemco Hydraulics Limited manufactures and sells hydraulic press machines and related equipment in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees381

Annual revenue₹94 Cr

How does it make money?

Turns over ₹94 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 381 employees supports ₹24.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹24.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS 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 23.6% 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 ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +108% while net margin moved +84% 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+108%

Margin effect+84%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.36 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

89/ 100

Excellent

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

Valuation

55/ 100

Fair

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

27.3x

3Y Median

3.6x

40 monthly readings · mean 15.0x · range 1.8x–55.9x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 663% above its 3y median of 3.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 59% below the peer median of 66.2x.

vs. its own history

Expensive

3.6x median over 40 months · +663%

vs. sector peers

Cheap

66.2x median of 4 peers · -59%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.8x

PEG

0.48

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 14.4% to 25.7% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 8.3% to 17.6%.
Return on capital is rising
ROCE has improved from 9.5% to 23.6%.
High return on capital employed
ROCE of 23.6% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1900% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.6% 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.
Margin expansion has further to run
EBITDA margin has risen from 14.4% to 25.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 59% 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 ₹15 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

The price already assumes success
The stock trades 663% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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

1Revenue growth stays above 21% a year✓ 27.6% CAGR
Latest reported year was 33.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 25.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹15 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 23.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

₹441 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.3x

Fair

Fairly valued against the generic band

P/B Ratio

5.21x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹3.69

Profitable

Profitable on a per-share basis

ROE

17.6%

Strong

Strong capital efficiency

ROCE

23.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

33.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

88.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.10%

Modest

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

Free Cash Flow

₹15 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

18.8%

Good

Healthy core-business profitability

Net Margin

16.0%

Good

Strong bottom-line conversion

Current Ratio

1.59

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.36

High swing

Swings more than the market in both directions

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

99.7 / 104.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹45 Cr	₹81 Cr	₹95 Cr	₹94 Cr	+27.6%
EBITDA	₹6 Cr	₹13 Cr	₹21 Cr	₹24 Cr	+54.7%
EBITDA Margin	14.4%	16.4%	21.8%	25.7%	—
PAT (Net Profit)	₹4 Cr	₹8 Cr	₹13 Cr	₹15 Cr	+56.3%
EPS	₹17.81	₹36.32	₹2.87	₹3.4	-42.4%
ROE	8.3%	14.4%	17.9%	17.6%	—
ROCE	9.5%	18.3%	24.2%	23.6%	—
Total Debt	₹11 Cr	₹19 Cr	₹16 Cr	₹15 Cr	+9.5%
Free Cash Flow	-₹7 Cr	₹7 Cr	₹12 Cr	₹15 Cr	—

🟢 Revenue has grown at 27.6% a year over 3 years.

🟢 EBITDA has grown at 54.7% a year over 3 years.

🟢 EBITDA Margin has risen from 14.4% to 25.7% over 3 years (+11.3 pts).

🟢 PAT (Net Profit) has grown at 56.3% a year over 3 years.

🔴 EPS has shrunk at 42.4% a year over 3 years.

🟢 ROE has risen from 8.3% to 17.6% over 3 years (+9.3 pts).

🟢 ROCE has risen from 9.5% to 23.6% over 3 years (+14.1 pts).

🔴 Total Debt has grown at 9.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹15 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹147 Cr

Total Liabilities

₹63 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹16 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.4%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

06 Aug 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 positive2 mixed2 general

Bemco Hydraulics Q1FY27 revenue up 50% to ₹1,330.74 lakh; profit jumps

scanx.trade, 13 AugResults

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

Bemco Hydraulics Share Price Soars with 8.5% Gain

Univest, 05 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Bemco Hydraulics FY26 net profit rises to ₹994.29 lakh

scanx.trade, 25 MayResults

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

Multibagger stock with nearly 1700% returns in a year goes ex-bonus, ex-split tomorrow. Check details

The Economic Times, 21 Aug

Bemco Hydraulics (BSE:522650) Stock Forecast & Analyst Predictions

Simply Wall Street, 15 NovAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

BEMCO HYDRAULICS LTD. Share Price - Live BEMHY Stock Price & Chart

Upstox, 20 Mar

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑