Bharat Bhushan Finance & Commodity Brokers Limited

Financial Services — Capital Markets · BSE

₹22.72₹0.00 (0.00%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, 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, though profits are falling even as sales grow. Cash generation 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 Bhushan Finance & Commodity Brokers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bharat Bhushan Finance & Commodity Brokers Limited, a non-banking financial company, engages in the investment and securities trading business in India.

IndustryCapital Markets

SectorFinancial Services

Employees5

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹13.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin17.5%

Net margin13.0%

Revenue / employee₹13.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE0.4%

ROE0.3%

Peer median ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +19% while net margin moved -37% 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+19%

Margin effect-37%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.9% — barely ahead of inflation
✗ Profit has declined at 9.2% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 25.4% in the latest year

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

57/ 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

52.8x

3Y Median

138.7x

40 monthly readings · mean 133.4x · range 54.2x–275.7x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 62% below its 3y median of 138.7x. 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 is priced broadly in line with the peer median of 58.4x.

vs. its own history

Cheap

138.7x median over 40 months · -62%

vs. sector peers

Fair

58.4x median of 3 peers · -10%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

52.8x

P/B

0.59x

EV/EBITDA

130.6x

PEG

—

Dividend Yield

1.76%

What's Good / What's Bad

🟢 What's Going Well1

Valuation below its historical average
At 52.8x the stock trades 62% below its own median of 138.7x.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 26.4% to 17.5% over 3 years.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.9 points, from 26.4% to 17.5%.
🟡Profit is decliningFinancial
Net profit is down 25% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 62% 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.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 26.4% to 17.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 5.9% 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.
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 16%✓ 17.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 4% a year✓ 5.9% CAGR
Latest reported year was 40.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 138.7x✓ 52.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

52.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.59x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.43

Profitable

Profitable on a per-share basis

ROE

0.3%

Weak

Weak capital efficiency

ROCE

0.4%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

40.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-25.4%

Falling

Profits are shrinking

Dividend Yield

1.76%

Modest

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹22.72

Operating Margin

83.6%

Good

Healthy core-business profitability

Net Margin

30.1%

Good

Strong bottom-line conversion

Current Ratio

5.98

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

22.5 / 23.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+5.9%
EBITDA	₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	-7.6%
EBITDA Margin	26.4%	40.5%	-27.3%	17.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	-9.2%
EPS	₹0.19	₹0.36	₹-0.22	₹0.13	-12.3%
ROE	0.6%	0.9%	-0.5%	0.3%	—
ROCE	0.7%	0.9%	-0.8%	0.4%	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 5.9% a year over 3 years.

🔴 EBITDA has shrunk at 7.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 26.4% to 17.5% over 3 years (-8.9 pts).

🔴 PAT (Net Profit) has shrunk at 9.2% a year over 3 years.

🔴 EPS has shrunk at 12.3% a year over 3 years.

🟡 ROE has held roughly flat at 0.3% over 3 years.

🟡 ROCE has held roughly flat at 0.4% over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹28 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.7%

Corporate Actions

Dividend Rate

₹0.4

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 positive1 mixed4 general

Bharat Bhushan Finance & Commodity Brokers Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Bharat Bhushan Finance shareholders approve ₹0.40 dividend for FY26

scanx.trade, 25 SeptCapital return

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

Bharat Bhushan Finance Share Price Gains After Q1 FY27 Results

Univest, 24 JulPrice 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.

Bharat Bhushan Finance & Commodity Brokers Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Bharat Bhushan Finance & Commodity Brokers Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Bharat Bhushan settles NSEL case with SEBI; pays ₹6 lakh penalty

scanx.trade, 12 Sept

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟢Business QualityStrong14.1/20

🟢Financial HealthStrong17/20

🔴GrowthWeak5.7/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair9.7/15

🔴RiskHigh4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 16%17.5%
✗Return on equity stays above 8%0.3%
✓Revenue growth stays above 4% a year5.9% CAGR
✓Valuation vs its own median of 138.7x52.8x today