Bonlon Industries Limited

Basic Materials — Other Industrial Metals & Mining · NSE

₹39.76−₹0.38 (−0.95%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bonlon Industries Limited manufactures and trades in ferrous and non-ferrous metals in India and internationally. It operates through Metal, Trading, and Manufacturing segments.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees70

Annual revenue₹647 Cr

How does it make money?

Turns over ₹647 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 70 employees supports ₹9.25 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹9.25 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL 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 5.5% 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 ROE12.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +27% while net margin moved +23% 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+27%

Margin effect+23%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.9% is weak

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

38/ 100

Expensive

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

124.3x

Sector Median

12.3x

median of 3 sector peers

⚠️Against its sector it trades 909% above the peer median of 12.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

12.3x median of 3 peers · +909%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

13.0x

PEG

7.79

What's Good / What's Bad

🟢 What's Going Well1

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

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 160% over 3 years, from ₹15 Cr to ₹38 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹37 Cr in the latest year.

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?

The debt load needs earnings to hold up
Debt is 4.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 909% above the peer median. That premium needs a reason that persists, or it closes.
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%✓ 1.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.8x
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✗ -₹37 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.2x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 6% a year✓ 8.3% CAGR
Latest reported year was -31.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

4 / 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 · 2 neutral · 5 weak

Market Cap

₹65 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

124.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.65x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.32

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

-31.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

81.2%

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

-₹40 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.2%

Weak

Assets generate little profit

Operating Margin

1.7%

Weak

Thin margins leave little room for error

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.50

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

40.2 / 40.4

Bearish alignment (short < long)

RSI (14)

42.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹510 Cr	₹429 Cr	₹619 Cr	₹647 Cr	+8.3%
EBITDA	₹3 Cr	₹6 Cr	₹7 Cr	₹8 Cr	+32.1%
EBITDA Margin	0.7%	1.5%	1.2%	1.2%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹3 Cr	+16.0%
EPS	₹1.19	₹1.64	₹1.89	₹1.8	+14.8%
ROE	2.2%	2.9%	3.3%	2.6%	—
ROCE	3.7%	5.7%	6.5%	5.5%	—
Total Debt	₹15 Cr	₹29 Cr	₹27 Cr	₹38 Cr	+37.4%
Free Cash Flow	-₹12 Cr	-₹13 Cr	₹30 Cr	-₹37 Cr	—

🟢 Revenue has grown at 8.3% a year over 3 years.

🟢 EBITDA has grown at 32.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.2% over 3 years.

🟢 PAT (Net Profit) has grown at 16.0% a year over 3 years.

🟢 EPS has grown at 14.8% a year over 3 years.

🟡 ROE has held roughly flat at 2.6% over 3 years.

🟢 ROCE has risen from 3.7% to 5.5% over 3 years (+1.8 pts).

🔴 Total Debt has grown at 37.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹164 Cr

Total Liabilities

₹64 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.8%

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

1 negative5 general

Bonlon Industries to decide rights issue terms on October 22

scanx.trade, 16 Oct

BONLON Stock Price and Chart — NSE:BONLON

TradingView, 20 Feb

Bonlon Industries Share Price: Buy or Sell

Univest, 09 Sept

Bonlon Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Bonlon Industries secures in-principle listing approval for ₹49.75 crore rights issue

scanx.trade, 24 Sept

Bonlon Industries standalone net profit declines 50.98% in the June 2026 quarter

Business Standard, 15 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-31.1%) 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

StrongGrowth

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Profitability

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. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑