Bloom Industries Limited

Basic Materials — Steel · BSE

₹28.00−₹1.29 (−4.40%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bloom Industries Limited engages in the trading of iron and steel, and other items in India. The company was formerly known as Bakrewala Steels Limited and changed its name to Bloom Industries Limited in October 1994.

IndustrySteel

SectorBasic Materials

Employees1

Annual revenue₹14 Cr

How does it make money?

Turns over ₹14 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 1 employees supports ₹14.12 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹14.12 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 15.8% 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 ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +5% while net margin moved +141% 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+5%

Margin effect+141%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.06 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

64/ 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

15.2x

3Y Median

43.3x

40 monthly readings · mean 40.3x · range 16.0x–54.9x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 65% below its 3y median of 43.3x. 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 16% below the peer median of 18.2x.

vs. its own history

Cheap

43.3x median over 40 months · -65%

vs. sector peers

Fair

18.2x median of 4 peers · -16%

vs. generic bands

Fair

15x–35x

EV/EBITDA

57.3x

PEG

0.42

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 5.3% to 10.6%.
Return on capital is rising
ROCE has improved from 7.9% to 15.8%.
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

5 items require attention · 2 high · 3 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 90% against revenue up 5% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 44% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 65% 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.
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 6.9% to 2.9%. 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 12.6x 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 90% against revenue up 5%. 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 1.6% 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.
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%✓ 2.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 12.6x
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 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 1.6% CAGR
Latest reported year was -39.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

7 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.2x

Fair

Fairly valued against the generic band

P/B Ratio

1.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.84

Profitable

Profitable on a per-share basis

ROE

10.6%

Moderate

Moderate capital efficiency

ROCE

15.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

-39.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

55.0%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

13.0%

Average

Average margins

Net Margin

10.3%

Good

Strong bottom-line conversion

Current Ratio

1.04

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.06

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

30.1 / 30.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹30 Cr	₹24 Cr	₹14 Cr	+1.6%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-23.5%
EBITDA Margin	6.9%	3.6%	5.3%	2.9%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹0 Cr	₹1 Cr	+36.3%
EPS	₹0.69	₹0.85	₹0.74	₹1.74	+36.1%
ROE	5.3%	6.1%	5.1%	10.6%	—
ROCE	7.9%	9.5%	14.3%	15.8%	—
Total Debt	₹4 Cr	₹7 Cr	₹5 Cr	₹5 Cr	+13.0%
Free Cash Flow	₹1 Cr	₹1 Cr	₹9 Cr	-₹1 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.6% a year).

🔴 EBITDA has shrunk at 23.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.9% to 2.9% over 3 years (-4.0 pts).

🟢 PAT (Net Profit) has grown at 36.3% a year over 3 years.

🟢 EPS has grown at 36.1% a year over 3 years.

🟢 ROE has risen from 5.3% to 10.6% over 3 years (+5.4 pts).

🟢 ROCE has risen from 7.9% to 15.8% over 3 years (+8.0 pts).

🔴 Total Debt has grown at 13.0% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.5%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

2 mixed4 general

Truist raises Bloom Energy stock price target on demand growth By Investing.com

Investing.com India, 16 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Is Bloom Energy Stock Priced Right Against Its Peers?

Trefis, 15 Oct

Bloom Energy Is an AI Power Supply Bottleneck Bellwether. Why the Stock Is Falling.

Barron's, 15 Oct

Bloom Energy (BE) Stock Dips While Market Gains: Key Facts

Yahoo Finance, 15 Oct

Baird raises Bloom Energy stock price target on production expansion outlook

Investing.com India, 15 OctCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Bloom Energy vs. Constellation Energy: Which Energy Stock Is an AI-Driven Buy in 2026?

The Motley Fool, 16 Oct

Watch Items

Revenue growth is negative (-39.7%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability · Valuation

MiddlingFinancial Health · Growth

WeakRisk

Points for each in the Score ↑

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. 2 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 ↑