Bombay Cycle & Motor Agency Limited

Consumer Cyclical — Restaurants · BSE

₹1,525.00−₹0.70 (−0.05%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Debt is 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 Bombay Cycle & Motor Agency Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bombay Cycle & Motor Agency Limited engages in the automobile and hospitality businesses in India. It sells, services, and repairs multi brand motor cars; and operates restaurants and banquets under the CANTO, The Liquid Lounge, and Bellissima brand names.

IndustryRestaurants

SectorConsumer Cyclical

Employees51

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 51 employees supports ₹24.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin24.5%

Net margin19.7%

Revenue / employee₹24.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 8.6% 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.

ROCE8.6%

ROE8.4%

Peer median ROE25.9%

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 +44% while net margin moved -5% 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+44%

Margin effect-5%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.05 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

47/ 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

27.9x

2Y Median

23.0x

28 monthly readings · mean 23.2x · range 19.7x–27.0x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 21% above its 2y median of 23.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 60% below the peer median of 69.2x.

vs. its own history

Expensive

23.0x median over 28 months · +21%

vs. sector peers

Cheap

69.2x median of 4 peers · -60%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

27.9x

P/B

2.11x

EV/EBITDA

19.6x

PEG

2.55

Dividend Yield

0.33%

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 32% over 3 years.
Cash generation is improving
Free cash flow is up 31% over 3 years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 34.2% to 24.5% over 3 years.
Return on capital is falling
ROCE has declined from 11.3% to 8.6% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 172% against revenue growth of 44% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 1018% against revenue growth of 44% — stock may not be moving.
Valuation above its historical average
At 27.9x the stock trades 21% above its own median of 23.0x.

Red Flags

5 items require attention · 5 high

🔴High leverageFinancial
Debt/Equity of 1.60x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.7 points, from 34.2% to 24.5%.
🔴Receivables growing faster than salesFinancial
Receivables up 172% against revenue up 44% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 1018% against revenue up 44% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 32% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 34.2% to 24.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.60x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 172% against revenue up 44%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 21% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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.

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

1Revenue growth stays above 10% a year✓ 12.9% CAGR
Latest reported year was 6.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 24.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

2 good · 7 neutral · 2 weak

Market Cap

₹61 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.9x

Fair

Fairly valued against the generic band

P/B Ratio

2.11x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹54.64

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

8.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.60x

High

High leverage

Revenue Growth (YoY)

6.9%

Modest

Modest growth

Profit Growth (YoY)

-16.0%

Falling

Profits are shrinking

Dividend Yield

0.33%

Modest

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,525

Operating Margin

38.0%

Good

Healthy core-business profitability

Net Margin

17.2%

Good

Strong bottom-line conversion

Current Ratio

4.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.05

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1538.1 / 1554.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹9 Cr	₹10 Cr	₹12 Cr	+12.9%
EBITDA	₹3 Cr	₹3 Cr	₹3 Cr	₹3 Cr	+1.1%
EBITDA Margin	34.2%	32.8%	30.6%	24.5%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	-₹3 Cr	₹2 Cr	+11.0%
EPS	₹44.72	₹78.14	₹-77.21	₹61.1	+11.0%
ROE	7.3%	11.4%	-11.6%	8.4%	—
ROCE	11.3%	15.4%	-6.5%	8.6%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-11.9%
Free Cash Flow	₹1 Cr	₹5 Cr	₹1 Cr	₹2 Cr	+9.4%

🟢 Revenue has grown at 12.9% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.1% a year).

🔴 EBITDA Margin has fallen from 34.2% to 24.5% over 3 years (-9.7 pts).

🟢 PAT (Net Profit) has grown at 11.0% a year over 3 years.

🟢 EPS has grown at 11.0% a year over 3 years.

🟢 ROE has risen from 7.3% to 8.4% over 3 years (+1.1 pts).

🔴 ROCE has fallen from 11.3% to 8.6% over 3 years (-2.7 pts).

🟢 Total Debt has shrunk at 11.9% a year over 3 years.

🟢 Free Cash Flow has grown at 9.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹36 Cr

Total Liabilities

₹7 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

78.9%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

24 Jul 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive5 general

Bombay Cycle & Motor Agency Ltd Share Price

Business Today, 16 Oct

Bombay Cycle & Motor Agency Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

Bombay Cycle & Motor Agency shareholders approve FY26 financials with 98.6% support

scanx.trade, 07 Aug

Bombay Cycle & Motor Agency Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 04 Sept

Archidply Industries consolidated net profit rises 885.96% in the June 2026 quarter

Business Standard, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Bombay Cycle & Motor Agency Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

Watch Items

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

🟢Business QualityStrong13/20

🟢Financial HealthStrong14.5/20

🟡GrowthModest11.5/20

🟡ProfitabilityModerate7.9/15

🔴ValuationDemanding6.1/15

🔴RiskHigh3.9/10

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

This thesis breaks if

✓Revenue growth stays above 10% a year12.9% CAGR
✓EBITDA margin holds above 23%24.5%
✓Free cash flow remains positive₹2 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 8%8.6%