Pagaria Energy Limited

Energy — Thermal Coal · BSE

₹7.86+₹0.37 (+4.94%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:02 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Pagaria Energy Limited engages in trading of coal in India. The company offers steam coal, petroleum coal, char, and charcoal used as a fuel and coke, as well as for gasification, liquefaction, and industrial and cultural use.

IndustryThermal Coal

SectorEnergy

Employees3

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-200 reaches shareholders as profit, with ₹-92 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹7.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-91.6%

Net margin-200.1%

Revenue / employee₹7.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

RELIANCE INDUSTRIES LTDP/E 21.9x · ROE 8.3%

OIL AND NATURAL GAS CORP.P/E 6.4x · ROE 11.7%

BHARAT PETROLEUM CORP LTP/E 7.3x · ROE 17.1%

INDIAN OIL CORP LTDP/E 5.3x · ROE 15.4%

What is its competitive advantage?Little sign of one

Returns on capital of -1.3% 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.

ROCE-1.3%

ROE-7.7%

Peer median ROE15.4%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 8.2 points over the period

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.58x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 6539% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 0.5% to -7.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 0.8% to -1.3% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 6539% over 3 years, from ₹0 Cr to ₹11 Cr.
🔴High leverageFinancial
Debt/Equity of 2.78x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.9x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 252.5x to -0.9x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.78x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 0.5% to -7.7%. 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.
Several serious flags at once
4 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

1EBITDA margin holds above -94%✓ -91.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -0.9x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -1.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ 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 · 3 neutral · 6 weak

Market Cap

₹3 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.58x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.07

Loss-making

Negative earnings per share — the business is losing money

ROE

-7.7%

Weak

Weak capital efficiency

ROCE

-1.3%

Weak

Low return on total capital employed

Debt/Equity

2.78x

High

High leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

-832.0%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹7.86

Operating Margin

-101.3%

Weak

Thin margins leave little room for error

Net Margin

-208.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.65

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

7.0 / 7.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

81.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹0.08	₹0.1	₹0.14	₹-1.04	—
ROE	0.5%	0.7%	1.0%	-7.7%	—
ROCE	0.8%	1.0%	1.1%	-1.3%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹11 Cr	+304.9%
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹0 Cr	₹2 Cr	—

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.08 to ₹-1.04.

🔴 ROE has fallen from 0.5% to -7.7% over 3 years (-8.2 pts).

🔴 ROCE has fallen from 0.8% to -1.3% over 3 years (-2.0 pts).

🔴 Total Debt has grown at 304.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17 Cr

Total Liabilities

₹11 Cr

Total Debt

₹11 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

38.9%

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.4%

Recent News

1 positive5 general

Pagaria Energy Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Pagaria Energy Limited Submits SEBI Compliance Certificate for Q4FY26

scanx.trade, 16 Apr

Pagaria Energy Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Pagaria Energy posts ₹45 lakh loss in FY26, schedules AGM

scanx.trade, 03 Sept

Enbee Trade & Finance standalone net profit rises 63.97% in the June 2026 quarter

Business Standard, 14 AugResults

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

Vedanta Aluminium, BSE, VIL shares in AMFI's largecap list? Vedanta Power, Vedanta O&G, Vedanta Iron likely in smallcap category

Business Today, 22 Jun

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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak6.2/20

🟡Financial HealthAdequate9.6/20

🟡GrowthModest10/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.1/15

🔴RiskHigh3.9/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -94%-91.6%
✗Interest cover stays above 3x-0.9x
✓Free cash flow remains positive₹2 Cr
✗ROCE stays above 8%-1.3%