Bhageria Indust. (BHAGERIA)

FairStock Score: 53/100 — MIXED

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

Key Financials

Strengths

• Low leverage with debt/equity of 0.13 provides financial cushion.
• High promoter holding of 71.75% aligns management with minority shareholders.
• P/E of 13.46 and P/B of 1.35 against book value of ₹120.19 offer a seemingly reasonable valuation.
• Sales growth of 41.79% and latest quarter sales of ₹242 Cr show top-line momentum.

Concerns

• Profit declined 7.90% despite 41.79% sales growth, indicating margin compression.
• Latest quarter net profit of ₹11 Cr on ₹242 Cr sales reflects a very thin net margin.
• Piotroski F-Score of 4/9 suggests poor fundamental and operational health.
• ROE of 9.99% and ROCE of 8.07% are below the levels expected from a high-quality or moat-driven business.

AI Analysis

Let me start with what I like: a company with debt/equity of just 0.13 and promoters holding 71.75% shows skin in the game. At ₹162.50, the market cap is ₹673 Cr, only 1.35 times book value of ₹120.19, and the P/E of 13.46 looks modest. But Graham taught me never to confuse a cheap multiple with a bargain. This is a dyes and pigments business—cyclical and exposed to raw material costs and global demand. The numbers give me pause. Sales jumped 41.79%, yet profit fell 7.90%. In the latest quarter, sales were ₹242 Cr but net profit was only ₹11 Cr—a thin margin. Return on equity is just 9.99%, and ROCE is 8.07%. These are mediocre returns on capital; a wonderful business should earn far more. The Piotroski F-Score of 4/9 reinforces my caution: operating efficiency looks weak, and falling profits during a sales surge suggests pricing power is limited or costs are rising. The stock has fallen from ₹244.60 to ₹162.50; the market is repricing lower quality. Is there an opportunity? Possibly, if the sales growth is real and margins recover. But I need evidence of consistent earnings, not just top-line excitement. The low debt and book value cushion the downside, but the upside depends on management fixing profitability. I would wait for a track record of margin stability and profit growth before treating this as a value investment. As Buffett says, it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. This looks like a fair company at a fair price—so I will keep watching.

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