Bhagyanagar India Limited

Basic Materials — Copper · NSE

₹55.30+₹2.60 (+4.93%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Bhagyanagar India Limited manufactures and distributes copper products in India.

IndustryCopper

SectorBasic Materials

Employees4

Annual revenue₹2,378 Cr

How does it make money?

Turns over ₹2,378 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹594.46 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin4.5%

Net margin2.1%

Revenue / employee₹594.46 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Some evidence

ROCE of 33.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE33.4%

ROE19.5%

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +29% while net margin moved +284% 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+29%

Margin effect+284%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.27 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

88/ 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

2.8x

3Y Median

24.5x

40 monthly readings · mean 25.8x · range 3.5x–98.6x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 89% below its 3y median of 24.5x. 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 90% below the peer median of 28.7x.

vs. its own history

Cheap

24.5x median over 40 months · -89%

vs. sector peers

Cheap

28.7x median of 4 peers · -90%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

2.8x

P/B

0.69x

EV/EBITDA

4.1x

PEG

0.04

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 1.9% to 4.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 6.9% to 19.5%.
Return on capital is rising
ROCE has improved from 13.9% to 33.4%.
High return on capital employed
ROCE of 33.4% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 2.8x the stock trades 89% below its own median of 24.5x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 66% against revenue growth of 29% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 59% against revenue growth of 29% — stock may not be moving.

Red Flags

2 items require attention · 2 watch

🟡Receivables growing faster than salesFinancial
Receivables up 66% against revenue up 29% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 59% against revenue up 29% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 33.4% 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 1.9% to 4.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 89% 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 90% 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?

Sales are being booked faster than collected
Receivables are up 66% against revenue up 29%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 3%✓ 4.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 8.8% CAGR
Latest reported year was 45.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹45 Cr
Profit that never becomes cash eventually stops being profit.

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

8 good · 3 neutral · 0 weak

Market Cap

₹185 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.8x

Cheap

Cheap against the generic band

P/B Ratio

0.69x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹19.64

Profitable

Profitable on a per-share basis

ROE

19.5%

Strong

Strong capital efficiency

ROCE

33.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.01x

Moderate

Moderate leverage

Revenue Growth (YoY)

45.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

166.0%

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

₹45 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹55.3

Operating Margin

5.1%

Average

Average margins

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.27

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

293.9 / 352.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

13.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,846 Cr	₹1,429 Cr	₹1,626 Cr	₹2,378 Cr	+8.8%
EBITDA	₹35 Cr	₹33 Cr	₹38 Cr	₹107 Cr	+45.6%
EBITDA Margin	1.9%	2.3%	2.3%	4.5%	—
PAT (Net Profit)	₹10 Cr	₹46 Cr	₹14 Cr	₹50 Cr	+70.5%
EPS	₹3.17	₹14.29	₹4.38	₹15.68	+70.4%
ROE	6.9%	23.6%	6.8%	19.5%	—
ROCE	13.9%	26.9%	11.4%	33.4%	—
Total Debt	₹220 Cr	₹101 Cr	₹275 Cr	₹259 Cr	+5.6%
Free Cash Flow	-₹49 Cr	₹92 Cr	-₹155 Cr	₹45 Cr	—

🟢 Revenue has grown at 8.8% a year over 3 years.

🟢 EBITDA has grown at 45.6% a year over 3 years.

🟢 EBITDA Margin has risen from 1.9% to 4.5% over 3 years (+2.6 pts).

🟢 PAT (Net Profit) has grown at 70.5% a year over 3 years.

🟢 EPS has grown at 70.4% a year over 3 years.

🟢 ROE has risen from 6.9% to 19.5% over 3 years (+12.6 pts).

🟢 ROCE has risen from 13.9% to 33.4% over 3 years (+19.5 pts).

🔴 Total Debt has grown at 5.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹49 Cr to ₹45 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹635 Cr

Total Liabilities

₹377 Cr

Total Debt

₹259 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹59 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.2%

Corporate Actions

Ex-Dividend Date

23 Sept 2015

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

2 positive1 mixed3 general

Stock split, spin-off: Last chance to buy these stocks today - Check record date, share performance

Livemint, 07 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Bhagyanagar India Upper Circuit Streak: Day 2 Price and Data

Univest, 12 Oct

Bhagyanagar India Signs Rs 60 Cr Land Deal in Hyderabad

Equitypandit, 13 OctOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Bhagyanagar India: நிலத்தை விற்று பணம் பார்க்கும் நிறுவனம், **₹60 கோடி** டீல் அறிவிப்பு

Whalesbook, 12 Oct

Bhagyanagar India fixes October 8 record date for merger share allotment

scanx.trade, 08 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

With EPS Growth And More, Bhagyanagar India (NSE:BHAGYANGR) Makes An Interesting Case

Simply Wall Street, 11 Sept

Watch Items

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 QualityAdequate12.4/20

🟢Financial HealthStrong13.7/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong9.8/15

🟢ValuationAttractive13.2/15

🔴RiskHigh2.6/10

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.

This thesis breaks if

✓EBITDA margin holds above 3%4.5%
✗Debt / EBITDA stays below 2x2.4x
✗Interest cover stays above 3x2.9x
✓Revenue growth stays above 7% a year8.8% CAGR
✓Free cash flow remains positive₹45 Cr