Bridge Securities Limited

Consumer Defensive — Food Distribution · BSE

₹6.94−₹0.28 (−3.88%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

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

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

What does this company do?

Bridge Securities Limited engages in agriculture activities in India. It is involved in trading seeds, food grains, and agricultural produce, including rice, wheat, onions, potato, tomato, isabgol, and pulses; cultivating cucumber, onion, and castor.

IndustryFood Distribution

SectorConsumer Defensive

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹72 reaches shareholders as profit, with ₹100 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES 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 31.6% 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 ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +123% while net margin moved -202% 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+123%

Margin effect-202%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.58 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

43/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

38.6x

2Y Median

20.1x

28 monthly readings · mean 20.3x · range 2.5x–40.3x

Sector Median

43.3x

median of 4 sector peers

⚠️Current valuation is approximately 92% above its 2y median of 20.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 43.3x.

vs. its own history

Expensive

20.1x median over 28 months · +92%

vs. sector peers

Fair

43.3x median of 4 peers · -11%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

12.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -60.7% to 99.8% over 3 years.
Return on equity is rising
ROE has improved from -158.4% to 23.2%.
Return on capital is rising
ROCE has improved from -189.3% to 31.6%.
High return on capital employed
ROCE of 31.6% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.

🔴 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

🔴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 402% against revenue up 123% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.6% 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.
Margin expansion has further to run
EBITDA margin has risen from -60.7% to 99.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 402% against revenue up 123%. 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 92% 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.
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 23% a year✓ 30.6% CAGR
Latest reported year was -59.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 98%✓ 99.8%
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✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 29%✓ 31.6%
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

3 good · 5 neutral · 3 weak

Market Cap

₹27 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.18

Profitable

Profitable on a per-share basis

ROE

13.3%

Moderate

Moderate capital efficiency

ROCE

31.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

-59.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-66.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

10.9%

Good

Assets are working hard

Operating Margin

83.1%

Good

Healthy core-business profitability

Net Margin

42.2%

Good

Strong bottom-line conversion

Current Ratio

12.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.58

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.8 / 8.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+30.6%
EBITDA	-₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	—
EBITDA Margin	-60.7%	85.7%	92.9%	99.8%	—
PAT (Net Profit)	-₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	—
EPS	₹-0.2	₹1.54	₹0.38	₹0.4	—
ROE	-158.4%	54.5%	43.2%	23.2%	—
ROCE	-189.3%	72.4%	59.8%	31.6%	—
Total Debt	—	₹0 Cr	₹0 Cr	₹0 Cr	—
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹1 Cr	-₹2 Cr	—

🟢 Revenue has grown at 30.6% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹2 Cr.

🟢 EBITDA Margin has risen from -60.7% to 99.8% over 3 years (+160.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹2 Cr.

🟢 EPS has turned positive, from ₹-0.2 to ₹0.4.

🟢 ROE has risen from -158.4% to 23.2% over 3 years (+181.7 pts).

🟢 ROCE has risen from -189.3% to 31.6% over 3 years (+220.9 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹8 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

26.8%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

6 general

Bridge Securities (BSE:530249) - Stock Analysis

Simply Wall Street, 10 Sept

Bridge Securities Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Bridge Securities Limited Announces Postal Ballot for Company Name Change to Weorg Enterprises Limited

scanx.trade, 11 Oct

Bridge Securities Ltd is Rated Strong Sell

MarketsMojo, 11 Oct

Bridge Securities - 15 penny stocks crash up to 50% in 3 months: Are you holding any?

The Economic Times, 23 Aug

Bridge Securities sets book closure for Sept 21 AGM

scanx.trade, 27 Aug

Watch Items

Revenue growth is negative (-59.5%) 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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑