Bharat Seats Limited

Consumer Cyclical — Auto Parts · NSE

₹208.00−₹0.97 (−0.46%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

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 Bharat Seats Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bharat Seats Limited manufactures and sells seating systems and moulded carpets and extruded components for the automotive and surface transport industries in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees445

Annual revenue₹1,948 Cr

How does it make money?

Turns over ₹1,948 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 445 employees supports ₹4.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.38 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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?Some evidence

ROCE of 20.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE23.0%

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 +86% while net margin moved +6% 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+86%

Margin effect+6%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.89 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

72/ 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

28.2x

2Y Median

35.3x

21 monthly readings · mean 36.9x · range 27.0x–57.9x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 20% below its 2y median of 35.3x. 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 38% below the peer median of 45.7x.

vs. its own history

Cheap

35.3x median over 21 months · -20%

vs. sector peers

Cheap

45.7x median of 4 peers · -38%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.4x

PEG

1.12

What's Good / What's Bad

🟢 What's Going Well5

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 14.7% to 18.4%.
Return on capital is rising
ROCE has improved from 17.4% to 20.4%.
High return on capital employed
ROCE of 20.4% is the mark of a business that converts capital into profit efficiently.
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

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 68% over 3 years, from ₹66 Cr to ₹110 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 173% against revenue up 86% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.88 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.4% 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.
Priced below its own history
The stock trades 20% 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 38% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹56 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 173% against revenue up 86%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
2 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 17% a year✓ 22.9% CAGR
Latest reported year was 46.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹56 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

7 good · 3 neutral · 1 weak

Market Cap

₹1,306 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.2x

Fair

Fairly valued against the generic band

P/B Ratio

5.69x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹7.37

Profitable

Profitable on a per-share basis

ROE

19.9%

Strong

Strong capital efficiency

ROCE

20.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

46.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.72%

Modest

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

Free Cash Flow

₹31 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

5.8%

Average

Average asset productivity

Operating Margin

3.5%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.88

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.89

Market-like

Moves roughly in line with the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

210.7 / 219.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,049 Cr	₹1,064 Cr	₹1,286 Cr	₹1,948 Cr	+22.9%
EBITDA	₹50 Cr	₹65 Cr	₹79 Cr	₹104 Cr	+27.6%
EBITDA Margin	4.8%	6.1%	6.1%	5.4%	—
PAT (Net Profit)	₹22 Cr	₹25 Cr	₹33 Cr	₹42 Cr	+25.1%
EPS	₹3.43	₹2	₹5.21	₹6.72	+25.1%
ROE	14.7%	15.0%	16.8%	18.4%	—
ROCE	17.4%	14.1%	16.5%	20.4%	—
Total Debt	₹66 Cr	₹160 Cr	₹152 Cr	₹110 Cr	+18.8%
Free Cash Flow	-₹18 Cr	-₹17 Cr	₹26 Cr	₹56 Cr	—

🟢 Revenue has grown at 22.9% a year over 3 years.

🟢 EBITDA has grown at 27.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.4% over 3 years.

🟢 PAT (Net Profit) has grown at 25.1% a year over 3 years.

🟢 EPS has grown at 25.1% a year over 3 years.

🟢 ROE has risen from 14.7% to 18.4% over 3 years (+3.7 pts).

🟢 ROCE has risen from 17.4% to 20.4% over 3 years (+3.0 pts).

🔴 Total Debt has grown at 18.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹18 Cr to ₹56 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹737 Cr

Total Liabilities

₹507 Cr

Cash & Equivalents

₹15 Cr

Operating Cash Flow

₹107 Cr

Capex

-₹51 Cr

Shareholding (proxy)

Institutional Holding

16.4%

Insider Holding

60.0%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

17 Jul 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive1 mixed4 general

Bharat Seats Share Price Forecast: 3 Year Outlook to 2030

Univest, 15 Jul

Bharat Seats Limited Issues Postal Ballot Notice for Rs 2400 Crore Related Party Transaction Approval with Maruti Suzuki

scanx.trade, 10 Oct

Is It Smart To Buy Bharat Seats Limited (NSE:BHARATSE) Before It Goes Ex-Dividend?

Simply Wall Street, 13 JulCapital return

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

NSE Volume Gainers on July 1, 2026: RITES, Bharat Seats, JTEKT India Among Stocks in Focus

HDFC Sky, 01 Jul

Bharat Seats gains as Q1 PAT jumps 44% YoY to Rs 13 crore

Business Standard, 04 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Bharat Seats Standalone June 2026 Net Sales at Rs 577.83 crore, up 35.3% Y-o-Y

Moneycontrol.com, 07 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

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

All 5 tripwires holding · see Key things to watch ↑