Bharat Coking Coal Limited

Basic Materials — Coking Coal · NSE

₹31.66−₹0.30 (−0.94%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bharat Coking Coal Limited produces and sells coal in India. The company offers coking coal, non-coking coal, and washed coking and power coal products, as well as rejects and slurries.

IndustryCoking Coal

SectorBasic Materials

Employees30,361

Annual revenue₹13,645 Cr

How does it make money?

Turns over ₹13,645 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 30,361 employees supports ₹44.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹44.9 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.3% 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 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 +10% while net margin moved -83% 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+10%

Margin effect-83%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 2.2% is weak
✗ ROE has fallen by 15.3 points over the period

Quality vs. Valuation

Company Quality

31/ 100

Weak

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

Valuation

31/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

24.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 17.5% to 2.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 9.0% to 2.3% — often a sign of competition or overexpansion.

Red Flags

8 items require attention · 3 high · 5 watch

🔴Debt has risen sharplyFinancial
Total debt is up 954% over 3 years, from ₹213 Cr to ₹2,242 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 129% against revenue up 10% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 196% against revenue up 10% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 24.7x to 3.0x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1,259 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 81% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.93 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 7.2% to 5.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 129% against revenue up 10%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 3.4% 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.
Returns on shareholder capital are falling
ROE has dropped from 17.5% to 2.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

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

1EBITDA margin holds above 3%✓ 5.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.2x
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✗ -₹1,259 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 3.4% CAGR
Latest reported year was -3.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

3 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹14,744 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

2.55x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.25

Loss-making

Negative earnings per share — the business is losing money

ROE

2.2%

Weak

Weak capital efficiency

ROCE

2.3%

Weak

Low return on total capital employed

Debt/Equity

0.39x

Low

Conservative leverage

Revenue Growth (YoY)

-3.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-89.7%

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

-₹1,259 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-15.9%

Weak

Thin margins leave little room for error

Net Margin

-0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.93

Adequate

Adequate, but no real cushion

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

32.1 / 33.0

Bearish alignment (short < long)

RSI (14)

48.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12,349 Cr	₹13,161 Cr	₹16,113 Cr	₹13,645 Cr	+3.4%
EBITDA	₹883 Cr	₹2,478 Cr	₹2,351 Cr	₹691 Cr	-7.9%
EBITDA Margin	7.2%	18.8%	14.6%	5.1%	—
PAT (Net Profit)	₹665 Cr	₹1,564 Cr	₹1,240 Cr	₹128 Cr	-42.2%
EPS	₹1.43	₹3.36	₹2.66	₹0.28	-41.9%
ROE	17.5%	29.4%	19.2%	2.2%	—
ROCE	9.0%	24.7%	17.6%	2.3%	—
Total Debt	₹213 Cr	₹230 Cr	₹233 Cr	₹2,242 Cr	+119.3%
Free Cash Flow	₹686 Cr	₹98 Cr	-₹208 Cr	-₹1,259 Cr	—

🟢 Revenue has grown at 3.4% a year over 3 years.

🔴 EBITDA has shrunk at 7.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.2% to 5.1% over 3 years (-2.1 pts).

🔴 PAT (Net Profit) has shrunk at 42.2% a year over 3 years.

🔴 EPS has shrunk at 41.9% a year over 3 years.

🔴 ROE has fallen from 17.5% to 2.2% over 3 years (-15.3 pts).

🔴 ROCE has fallen from 9.0% to 2.3% over 3 years (-6.7 pts).

🔴 Total Debt has grown at 119.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹686 Cr to -₹1,259 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20,585 Cr

Total Liabilities

₹14,807 Cr

Cash & Equivalents

₹367 Cr

Operating Cash Flow

-₹641 Cr

Capex

-₹619 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

90.0%

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

4 mixed2 general

BHARAT COKING COAL LTD Share Price - Live NSE: BHARATCOAL Stock Price & Chart

Upstox, 15 Oct

Bharat Coking Coal share price zooms over 7% after raw material price hike

Business Standard, 14 Oct

Bharat Coking Coal share price jumps 7% today despite 19% fall in 2026 | Check target, stop loss

Livemint, 14 OctPrice 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 Coking Coal shares rise 6% as company raises prices of select raw coking coal grades

Moneycontrol.com, 14 OctPrice 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 Coking Coal Share Price Up 7%: Target, Stop Loss, Levels

Univest, 14 OctPrice 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 Coking Coal shares jump over 7%. What's behind the sharp surge?

The Economic Times, 21 AugPrice 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.

Watch Items

Revenue growth is negative (-3.6%) 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

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

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. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑