BF Utilities Limited

Industrials — Infrastructure Operations · NSE

₹471.00+₹5.80 (+1.25%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

BF Utilities Limited, together with its subsidiaries, engages in the infrastructure business in India.

IndustryInfrastructure Operations

SectorIndustrials

Employees7

Annual revenue₹836 Cr

How does it make money?

Turns over ₹836 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹75 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹119.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹119.38 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 27.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 38.9% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +63% while net margin moved +77% 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+63%

Margin effect+77%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.41 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

81/ 100

Excellent

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.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.9x

4Y Median

20.2x

52 monthly readings · mean 20.8x · range 9.5x–30.1x

Sector Median

30.0x

median of 2 sector peers

🟢Current valuation is approximately 36% below its 4y median of 20.2x. 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 57% below the peer median of 30.0x.

vs. its own history

Cheap

20.2x median over 52 months · -36%

vs. sector peers

Cheap

30.0x median of 2 peers · -57%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.2x

PEG

0.31

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 62.7% to 75.4% over 3 years.
Debt is being paid down
Total debt is down 43% over 3 years.
Cash generation is improving
Free cash flow is up 106% over 3 years.
Return on capital is rising
ROCE has improved from 15.2% to 27.6%.
High return on capital employed
ROCE of 27.6% is the mark of a business that converts capital into profit efficiently.
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 high

🔴High leverageFinancial
Debt/Equity of 4.62x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 409% against revenue up 63% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.6% 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 62.7% to 75.4%. 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 43% 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 36% 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 57% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 4.62x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 409% against revenue up 63%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 13% a year✓ 17.7% CAGR
Latest reported year was 2.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 73%✓ 75.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹507 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 27.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹1,774 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.9x

Cheap

Cheap against the generic band

P/B Ratio

8.80x

Rich

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

EPS (TTM)

₹36.48

Profitable

Profitable on a per-share basis

ROE

38.9%

Strong

Strong capital efficiency

ROCE

27.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.62x

High

High leverage

Revenue Growth (YoY)

2.0%

Modest

Modest growth

Profit Growth (YoY)

-0.6%

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

₹507 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-97.3%

Weak

Thin margins leave little room for error

Net Margin

17.9%

Good

Strong bottom-line conversion

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

499.3 / 518.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

18.0

Oversold zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹513 Cr	₹759 Cr	₹969 Cr	₹836 Cr	+17.7%
EBITDA	₹322 Cr	₹501 Cr	₹587 Cr	₹630 Cr	+25.1%
EBITDA Margin	62.7%	66.0%	60.6%	75.4%	—
PAT (Net Profit)	₹51 Cr	₹124 Cr	₹147 Cr	₹146 Cr	+42.3%
EPS	₹13.49	₹33.03	₹39.12	—	—
ROE	—	—	266.2%	72.7%	—
ROCE	15.2%	24.2%	25.6%	27.6%	—
Total Debt	₹1,631 Cr	₹1,482 Cr	₹1,298 Cr	₹932 Cr	-17.0%
Free Cash Flow	₹246 Cr	₹323 Cr	₹340 Cr	₹507 Cr	+27.2%

🟢 Revenue has grown at 17.7% a year over 3 years.

🟢 EBITDA has grown at 25.1% a year over 3 years.

🟢 EBITDA Margin has risen from 62.7% to 75.4% over 3 years (+12.7 pts).

🟢 PAT (Net Profit) has grown at 42.3% a year over 3 years.

🔴 ROE has fallen from 266.2% to 72.7% over 3 years (-193.5 pts).

🟢 ROCE has risen from 15.2% to 27.6% over 3 years (+12.4 pts).

🟢 Total Debt has shrunk at 17.0% a year over 3 years.

🟢 Free Cash Flow has grown at 27.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹2,429 Cr

Total Liabilities

₹1,473 Cr

Cash & Equivalents

₹58 Cr

Operating Cash Flow

₹540 Cr

Capex

-₹33 Cr

Shareholding (proxy)

Institutional Holding

0.6%

Insider Holding

64.4%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%

Recent News

4 mixed1 negative1 general

BF Utilities Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 06 AugAnalyst view

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

BF Utilities delays consolidated results pending subsidiary statements

scanx.trade, 24 JunResults

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

BF Utilities Ltd. Share Price Rises 11.72% on Valuation

Univest, 03 SeptPrice 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.

BF Utilities board notes BSE fine, promoter freeze for FY26 delay

scanx.trade, 14 AugRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Kalyani Steels, BF Utilities settle Sebi RPT case for ₹4.12 crore

Business Standard, 23 Feb

BF Utilities Q4 FY26 Results Preview and Earnings Outlook

Univest, 30 MarResults

🟡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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑