Bengal & Assam Company Limited

Consumer Cyclical — Auto Parts · NSE

₹5,900.00+₹0.50 (+0.01%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, 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. Debt is 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 Bengal & Assam Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bengal & Assam Company Limited operates as an investment company in India and internationally. It is also involved in the investment in securities; and trading of goods.

IndustryAuto Parts

SectorConsumer Cyclical

Employees5

Annual revenue₹2,377 Cr

How does it make money?

Turns over ₹2,377 Cr a year. Of every ₹100 of sales, about ₹35 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹475.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹475.37 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. 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 3.7% 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 ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -86% while net margin moved +509% 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+509%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 47.6% a year
✗ Profit has declined at 4.2% a year
✗ Profit fell 24.6% in the latest year

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

74/ 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

8.8x

Sector Median

45.7x

median of 4 sector peers

🟢Against its sector it trades 81% below the peer median of 45.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

45.7x median of 4 peers · -81%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

16.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 10.1% to 18.8% over 3 years.
Debt is being paid down
Total debt is down 89% 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 17.0% to 7.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 9.9% to 3.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 6.03x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 10.1% to 18.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 89% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 81% 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?

Leverage amplifies any setback
Debt/Equity of 6.03x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 17.0% to 7.7%. 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.
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
Small 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

1EBITDA margin holds above 17%✓ 18.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹153 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 3.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 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

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹6,728 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.8x

Cheap

Cheap against the generic band

P/B Ratio

0.63x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹668.6

Profitable

Profitable on a per-share basis

ROE

7.7%

Weak

Weak capital efficiency

ROCE

3.7%

Weak

Low return on total capital employed

Debt/Equity

6.03x

High

High leverage

Revenue Growth (YoY)

9.6%

Modest

Modest growth

Profit Growth (YoY)

-24.6%

Falling

Profits are shrinking

Dividend Yield

0.85%

Modest

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

Free Cash Flow

₹153 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

16.3%

Good

Healthy core-business profitability

Net Margin

30.3%

Good

Strong bottom-line conversion

Current Ratio

2.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

RSI (14)

44.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16,492 Cr	₹12,917 Cr	₹2,128 Cr	₹2,377 Cr	-47.6%
EBITDA	₹1,663 Cr	₹1,927 Cr	₹451 Cr	₹447 Cr	-35.5%
EBITDA Margin	10.1%	14.9%	21.2%	18.8%	—
PAT (Net Profit)	₹938 Cr	₹3,892 Cr	₹732 Cr	₹823 Cr	-4.2%
EPS	₹830.1	₹3,413.01	₹642.14	₹721.96	-4.5%
ROE	17.0%	42.9%	7.5%	7.7%	—
ROCE	9.9%	45.4%	4.2%	3.7%	—
Total Debt	₹4,989 Cr	₹302 Cr	₹442 Cr	₹538 Cr	-52.4%
Free Cash Flow	₹869 Cr	₹1,226 Cr	₹192 Cr	₹153 Cr	-44.0%

🔴 Revenue has shrunk at 47.6% a year over 3 years.

🔴 EBITDA has shrunk at 35.5% a year over 3 years.

🟢 EBITDA Margin has risen from 10.1% to 18.8% over 3 years (+8.7 pts).

🔴 PAT (Net Profit) has shrunk at 4.2% a year over 3 years.

🔴 EPS has shrunk at 4.5% a year over 3 years.

🔴 ROE has fallen from 17.0% to 7.7% over 3 years (-9.3 pts).

🔴 ROCE has fallen from 9.9% to 3.7% over 3 years (-6.2 pts).

🟢 Total Debt has shrunk at 52.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 44.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12,450 Cr

Total Liabilities

₹1,545 Cr

Cash & Equivalents

₹86 Cr

Operating Cash Flow

₹252 Cr

Capex

-₹100 Cr

Shareholding (proxy)

Institutional Holding

3.3%

Insider Holding

79.7%

Corporate Actions

Dividend Rate

₹50

Ex-Dividend Date

01 Sept 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 negative5 general

YPL Enterprises stake in Bengal & Assam rises to 22.57% via scheme

scanx.trade, 14 Oct

Bengal & Assam Company Limited (BENGALASM.NS) recent insider transactions

Yahoo Finance Australia, 10 Oct

Bengal & Assam Company consolidated net profit declines 24.59% in the June 2026 quarter

Business Standard, 14 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Bengal & Assam (BENGALASM.NS) Drifts to ₹6,375 After 1.5% Dip; Support Base at ₹6,056 Stays Intact - BPI Bear Confirmed

https://www.siam.in/, 03 Sept

Bengal & Assam Company Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Bengal & Assam discloses inter-se transfer of 2.63% shares among HUF members

scanx.trade, 01 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability

WeakGrowth · Risk

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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 4 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑