Bhavik Enterprises Limited

Basic Materials — Specialty Chemicals · BSE

₹150.00₹0.00 (0.00%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, 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, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Bhavik Enterprises Limited engages in trading of polymers in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees18

Annual revenue₹628 Cr

How does it make money?

Turns over ₹628 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 18 employees supports ₹34.91 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin3.0%

Net margin2.2%

Revenue / employee₹34.91 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of 11.2% 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.

ROCE11.2%

ROE10.3%

Peer median ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +29% while net margin moved -32% 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-32%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ 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

51/ 100

Average

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

Valuation

75/ 100

Cheap

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

22.5x

1.2Y Median

53.9x

14 monthly readings · mean 54.6x · range 50.3x–60.8x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 58% below its 1.2y median of 53.9x. 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 44% below the peer median of 40.4x.

vs. its own history

Cheap

53.9x median over 14 months · -58%

vs. sector peers

Cheap

40.4x median of 4 peers · -44%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

22.5x

P/B

1.84x

EV/EBITDA

14.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 44% over 3 years.
Valuation below its historical average
At 22.5x the stock trades 58% below its own median of 53.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 18.4% to 8.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.7% to 11.2% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 58% 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 44% 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?

Returns on shareholder capital are falling
ROE has dropped from 18.4% to 8.2%. 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.
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 1%✓ 3.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 8.9% CAGR
Latest reported year was 20.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹15 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✓ 11.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 53.9x✓ 22.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

4 good · 7 neutral · 0 weak

Market Cap

₹305 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.5x

Fair

Fairly valued against the generic band

P/B Ratio

1.84x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.66

Profitable

Profitable on a per-share basis

ROE

10.3%

Moderate

Moderate capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

20.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

86.9%

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

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹150

ROA

5.9%

Average

Average asset productivity

Operating Margin

4.1%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.25

Comfortable

Healthy short-term liquidity

52W Range Position

54%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

152.1 / 146.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹487 Cr	₹494 Cr	₹527 Cr	₹628 Cr	+8.9%
EBITDA	₹21 Cr	₹11 Cr	₹8 Cr	₹19 Cr	-3.7%
EBITDA Margin	4.3%	2.2%	1.5%	3.0%	—
PAT (Net Profit)	₹16 Cr	₹8 Cr	₹6 Cr	₹14 Cr	-4.5%
EPS	₹7.64	₹3.88	₹2.79	—	—
ROE	18.4%	8.5%	5.8%	8.2%	—
ROCE	24.7%	11.5%	7.8%	11.2%	—
Free Cash Flow	₹11 Cr	-₹3 Cr	-₹37 Cr	₹15 Cr	+12.9%

🟢 Revenue has grown at 8.9% a year over 3 years.

🔴 EBITDA has shrunk at 3.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 4.3% to 3.0% over 3 years (-1.3 pts).

🔴 PAT (Net Profit) has shrunk at 4.5% a year over 3 years.

🔴 ROE has fallen from 18.4% to 8.2% over 3 years (-10.2 pts).

🔴 ROCE has fallen from 24.7% to 11.2% over 3 years (-13.5 pts).

🟢 Free Cash Flow has grown at 12.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹234 Cr

Total Liabilities

₹68 Cr

Total Debt

—

Cash & Equivalents

₹43 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.7%

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

6 general

Compare LAFFANS PETR with

Equitymaster, 18 Oct

BHAVIK ENTERPRISES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Compare with COSCO INDIA

Equitymaster, 15 Oct

Compare with SIMPLEX PAPERS

Equitymaster, 15 Oct

Compare with SHREE SURGOV

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Compare with ASHOK-ALCO

Equitymaster, 15 Oct

Watch Items

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 QualityWeak7.5/20

🟢Financial HealthStrong17.5/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak6/15

🟢ValuationAttractive10.7/15

🔴RiskHigh2.3/10

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.

This thesis breaks if

✓EBITDA margin holds above 1%3.0%
✓Revenue growth stays above 7% a year8.9% CAGR
✓Free cash flow remains positive₹15 Cr
✓ROCE stays above 8%11.2%
✓Valuation vs its own median of 53.9x22.5x today