Baheti Recycling (BAHETI)

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding of 74.13% clearly aligns management’s interests with minority shareholders.
• ROCE of 21.82% shows efficient use of capital in a capital-intensive recycling business.
• Profit growth of 32.05% outpacing sales growth of 22.53% suggests improving margins or operating leverage.
• Piotroski F-Score of 7/9 indicates sound fundamentals and low near-term financial distress risk.

Concerns

• P/E of 30.56 is rich for a cyclical commodity-linked business, especially when the latest quarter net margin is only about 2.9%.
• Zero dividend yield means investors receive no cash return while waiting for uncertain capital appreciation.
• No ROE, book value, or debt/equity data is available, limiting the ability to assess balance-sheet quality and margin of safety.
• Share price is well below the 52-week high of ₹799.95, and the FairStock Score of 40/100 is mixed, highlighting downside risk.

AI Analysis

Let me apply the pillars I learned from Ben Graham: a good business, a durable moat, a sound balance sheet, and a price that gives margin of safety. Baheti Recycling, a ₹619 crore metal recycling business trading at 30.56 times earnings, fails my final test. I am paying ₹30.56 for every ₹1 of trailing earnings, in an industry selling aluminium, copper and zinc products — a cyclical field where commodity prices, not just management, drive results. Yes, profit growth is strong at 32.05%, ahead of sales growth of 22.53%, and the PEG of 1.12 suggests the market is pricing growth reasonably. ROCE of 21.82% is respectable, and the Piotroski score of 7/9 suggests financial health is intact. Promoter holding of 74.13% also aligns ownership with shareholders. But look at the latest quarter: ₹315 crore of sales produced only ₹9 crore in net profit, a wafer-thin 2.9% net margin. In the metals recycling business, this margin can be squeezed quickly when input costs or finished metal prices move against the company. I have no ROE, book value, or debt-equity figures, so I cannot judge the true return on equity or balance-sheet strength. The company pays zero dividend, forcing investors to rely entirely on capital gains. The shares have already fallen from ₹799.95 to ₹571.15, and the FairStock score remains mixed at 40/100. This is a well-placed fast-growing enterprise, but a cyclical one. Without a lower price or better visibility on balance-sheet quality, I cannot call it a wonderful buy.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer