Bharat Global Developers Limited

Technology — Information Technology Services · BSE

₹74.00−₹1.90 (−2.50%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Bharat Global Developers Limited engages in wholesale and trading of gold. The company is also involved in trading of construction materials, agricultural products and textiles, etc.

IndustryInformation Technology Services

SectorTechnology

Annual revenue₹26 Cr

How does it make money?

Turns over ₹26 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation.

EBITDA margin8.4%

Net margin-0.3%

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of -0.1% 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.

ROCE-0.1%

ROE-0.0%

Peer median ROE32.0%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

26/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

274.1x

3Y Median

173.7x

40 monthly readings · mean 872.7x · range 26.1x–5647.5x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 58% above its 3y median of 173.7x. 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 1556% above the peer median of 16.5x.

vs. its own history

Expensive

173.7x median over 40 months · +58%

vs. sector peers

Expensive

16.5x median of 4 peers · +1556%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

274.1x

P/B

3.89x

EV/EBITDA

378.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 1921% over 3 years — worth checking what it funded.
Valuation above its historical average
At 274.1x the stock trades 58% above its own median of 173.7x.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1921% over 3 years, from ₹4 Cr to ₹81 Cr.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 17995% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹6 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?

The debt load needs earnings to hold up
Debt is 37.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 58% 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.
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 6%✓ 8.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 37.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✓ ₹6 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -0.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 173.7x✗ 274.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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 · 3 neutral · 5 weak

Market Cap

₹749 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

274.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.89x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.27

Profitable

Profitable on a per-share basis

ROE

-0.0%

Weak

Weak capital efficiency

ROCE

-0.1%

Weak

Low return on total capital employed

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

-96.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-100.5%

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

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹74

Operating Margin

-50.7%

Weak

Thin margins leave little room for error

Net Margin

-43.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.61

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

116.5 / 113.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

6.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹26 Cr	₹669 Cr	₹26 Cr	—
EBITDA	₹0 Cr	₹5 Cr	₹22 Cr	₹2 Cr	+831.2%
EBITDA Margin	—	18.1%	3.3%	8.4%	—
PAT (Net Profit)	₹0 Cr	₹3 Cr	₹16 Cr	-₹0 Cr	—
EPS	₹0.04	₹3.85	₹1.6	₹-0.01	—
ROE	0.4%	3.3%	8.4%	-0.0%	—
ROCE	0.1%	4.6%	11.3%	-0.1%	—
Total Debt	₹4 Cr	₹4 Cr	₹88 Cr	₹81 Cr	+172.4%
Free Cash Flow	-₹0 Cr	-₹96 Cr	-₹157 Cr	₹6 Cr	—

🟢 EBITDA has grown at 831.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.1% to 8.4% over 3 years (-9.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.04 to ₹-0.01.

🟡 ROE has held roughly flat at -0.0% over 3 years.

🟡 ROCE has held roughly flat at -0.1% over 3 years.

🔴 Total Debt has grown at 172.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹492 Cr

Total Liabilities

₹302 Cr

Total Debt

₹81 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹6 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

92.5%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive1 mixed4 general

Bharat Global Developers Lower Circuit Streak: Day 2 Price and Data

Univest, 09 Oct

Bharat Global Developers adopts FY26 financials at virtual AGM

scanx.trade, 28 Sept

Bharat Global Developers (BGDL) Share Price Fall Streak extends to second straight session

Univest, 30 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Bharat Global Developers Ltd Upgraded to Sell on Technical Improvements Despite Weak Fundamentals

MarketsMojo, 30 SeptAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Bharat Global Developers Ltd leads losers in 'B' group

Business Standard, 02 Sept

Compare SEQUEL EROUT with

Equitymaster, 29 Sept

Watch Items

Revenue growth is negative (-96.1%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

🔴Business QualityWeak6.2/20

🟢Financial HealthStrong15/20

🟡GrowthModest10/20

🔴ProfitabilityWeak1.3/15

🔴ValuationDemanding4.9/15

🔴RiskHigh2.6/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 6%8.4%
✗Debt / EBITDA falls below 3x37.1x
✓Free cash flow remains positive₹6 Cr
✗ROCE stays above 8%-0.1%
✗Valuation vs its own median of 173.7x274.1x today