Bhagwati Autocast Limited

Basic Materials — Steel · BSE

₹615.00−₹23.40 (−3.67%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bhagwati Autocast Limited engages in the manufacture and sale of cast iron and spheroidal graphite iron castings in India.

IndustrySteel

SectorBasic Materials

Employees68

Annual revenue₹164 Cr

How does it make money?

Turns over ₹164 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 68 employees supports ₹2.41 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.41 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.7% against a peer median of 10.8% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +9% while net margin moved +55% 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+9%

Margin effect+55%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.53 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

86/ 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

12.2x

3Y Median

18.9x

40 monthly readings · mean 19.7x · range 13.6x–32.7x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 18.9x. 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 33% below the peer median of 18.2x.

vs. its own history

Cheap

18.9x median over 40 months · -35%

vs. sector peers

Cheap

18.2x median of 4 peers · -33%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.7x

PEG

0.64

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 10.4% to 14.1% over 3 years.
Debt is being paid down
Total debt is down 16% over 3 years.
Return on capital is rising
ROCE has improved from 26.5% to 28.8%.
High return on capital employed
ROCE of 28.8% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.15x 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

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 66% against revenue up 9% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.8% 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 10.4% to 14.1%. 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 16% 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 35% 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 33% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 2.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 12%✓ 14.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 2.8% CAGR
Latest reported year was 16.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 28.8%
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

8 good · 3 neutral · 0 weak

Market Cap

₹177 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.2x

Cheap

Cheap against the generic band

P/B Ratio

3.01x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹50.31

Profitable

Profitable on a per-share basis

ROE

24.7%

Strong

Strong capital efficiency

ROCE

28.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

16.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.57%

Modest

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

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

14.1%

Good

Assets are working hard

Operating Margin

10.2%

Average

Average margins

Net Margin

7.6%

Average

Average bottom-line conversion

Current Ratio

2.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

48%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

689.7 / 677.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

29.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹151 Cr	₹131 Cr	₹134 Cr	₹164 Cr	+2.8%
EBITDA	₹16 Cr	₹13 Cr	₹13 Cr	₹23 Cr	+13.9%
EBITDA Margin	10.4%	10.1%	9.3%	14.1%	—
PAT (Net Profit)	₹8 Cr	₹7 Cr	₹6 Cr	₹13 Cr	+19.0%
EPS	₹26.8	₹24.06	₹21.38	₹45.16	+19.0%
ROE	22.4%	17.0%	13.2%	22.1%	—
ROCE	26.5%	21.3%	16.8%	28.8%	—
Total Debt	₹11 Cr	₹8 Cr	₹11 Cr	₹9 Cr	-5.6%
Free Cash Flow	₹12 Cr	₹4 Cr	-₹4 Cr	₹13 Cr	+2.7%

🟢 Revenue has grown at 2.8% a year over 3 years.

🟢 EBITDA has grown at 13.9% a year over 3 years.

🟢 EBITDA Margin has risen from 10.4% to 14.1% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 19.0% a year over 3 years.

🟢 EPS has grown at 19.0% a year over 3 years.

🟡 ROE has held roughly flat at 22.1% over 3 years.

🟢 ROCE has risen from 26.5% to 28.8% over 3 years (+2.2 pts).

🟢 Total Debt has shrunk at 5.6% a year over 3 years.

🟢 Free Cash Flow has grown at 2.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹92 Cr

Total Liabilities

₹33 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹17 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.3%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

07 Aug 2026

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 negative5 general

Bhagwati Autocast Lower Circuit Today: Price, Data and Peers

Univest, 12 Oct

Bhagwati Autocast appoints Rahul Pitaliya as Company Secretary and Compliance Officer

scanx.trade, 10 Oct

Bhagwati Autocast Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Bhagwati Autocast Ltd Downgraded to Buy Amid Mixed Technical Signals and Strong Financials

MarketsMojo, 08 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Bhagwati Autocast Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 25 Sept

Bhagwati Autocast resumes operations at Gujarat plant after flood suspension

scanx.trade, 08 Aug

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

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality · Risk

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.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑