Bhagawati Gas Limited

Utilities — Utilities - Regulated Water · BSE

₹11.30+₹0.31 (+2.82%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bhagawati Gas Limited engages in the cleaning of water bodies business in India. The company is involved in the treatment of the wastewater and waterbodies, such as river, lake, pond, drain, etc., as well as industrial effluents using Phycoremediation technology.

IndustryUtilities - Regulated Water

SectorUtilities

Employees12

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹399 reaches shareholders as profit, with ₹-324 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹2.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹2.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER 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 6.5% 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 ROE15.8%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +94% while net margin moved -17% 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+94%

Margin effect-17%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.59 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

63/ 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

18.2x

1.3Y Median

16.6x

16 monthly readings · mean 28.2x · range 5.3x–126.4x

Sector Median

20.6x

median of 4 sector peers

🟡Currently trading close to its 1.3y median of 16.6x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 20.6x.

vs. its own history

Fair

16.6x median over 16 months · +10%

vs. sector peers

Fair

20.6x median of 4 peers · -11%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

1.07

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -337.3% to -324.5% over 3 years.
Return on capital is rising
ROCE has improved from -4.6% to 6.5%.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 244% over 3 years, from ₹0 Cr to ₹1 Cr.
🔴High leverageFinancial
Debt/Equity of 8.78x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 1229% against revenue up 94% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 5.5x to 3.7x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -337.3% to -324.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 8.78x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 1229% against revenue up 94%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
4 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 19% a year✓ 24.7% CAGR
Latest reported year was -88.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -326%✓ -324.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.7x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 6.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.2x

Fair

Fairly valued against the generic band

P/B Ratio

1.26x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.62

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

6.5%

Weak

Low return on total capital employed

Debt/Equity

8.78x

High

High leverage

Revenue Growth (YoY)

-88.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

595.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-3462.1%

Weak

Thin margins leave little room for error

Net Margin

590.3%

Good

Strong bottom-line conversion

Current Ratio

4.98

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

83%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

10.1 / 9.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

67.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	+24.7%
EBITDA	-₹0 Cr	₹0 Cr	₹1 Cr	-₹1 Cr	—
EBITDA Margin	-337.3%	5.5%	289.4%	-324.5%	—
PAT (Net Profit)	₹1 Cr	-₹0 Cr	₹0 Cr	₹1 Cr	+17.0%
EPS	₹0.37	₹-0.11	₹0.1	₹0.61	+18.1%
ROE	4.2%	-1.5%	1.0%	6.3%	—
ROCE	-4.6%	1.0%	7.3%	6.5%	—
Total Debt	₹0 Cr	₹1 Cr	₹3 Cr	₹1 Cr	+51.0%
Free Cash Flow	-₹2 Cr	-₹1 Cr	-₹3 Cr	-₹1 Cr	—

🟢 Revenue has grown at 24.7% a year over 3 years.

🟢 EBITDA Margin has risen from -337.3% to -324.5% over 3 years (+12.8 pts).

🟢 PAT (Net Profit) has grown at 17.0% a year over 3 years.

🟢 EPS has grown at 18.1% a year over 3 years.

🟢 ROE has risen from 4.2% to 6.3% over 3 years (+2.1 pts).

🟢 ROCE has risen from -4.6% to 6.5% over 3 years (+11.1 pts).

🔴 Total Debt has grown at 51.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

40.4%

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

1 positive5 general

Bhagawati Gas Limited (500051) Company Information

Simply Wall Street, 31 Mar

Bhagawati Gas Limited Submits Q4FY26 Dematerialization Certificate to BSE

scanx.trade, 07 Apr

Bhagawati Gas Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

Bhagawati Gas: शेअरधारकांची मोठी मंजुरी! आता कंपनी ग्रीन एनर्जी आणि AI क्षेत्रात करणार एन्ट्री

Whalesbook, 30 Sept

Bhagawati Gas Q1 Results: Net loss widens 7% YoY despite revenue jump

scanx.trade, 18 AugResults

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

Looking for value in penny stocks? 6 names with high PBV under Rs 10 soar up to 1,500%

The Economic Times, 06 Sept

Watch Items

Revenue growth is negative (-88.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Growth · Profitability

WeakFinancial Health · 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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑