Bhagyanagar Ind (BHAGYANGR)
CyclicalFairStock Score: 52/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹364.3 |
| Market Cap | ₹1,165.58 Cr |
| P/E Ratio | 18.55 |
| ROCE | 8.28% |
| ROE | 1.73% |
| Dividend Yield | 0% |
| Profit Growth | 166% |
| Debt/Equity | 1.01 |
| Sales Growth | 45.2% |
| Promoter Holding | 65.12% |
| 52-Week Range | ₹41 — ₹469.8 |
| Sector | Non - Ferrous Metals |
| Book Value | ₹80.56 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I start with a simple question: what kind of business am I buying? Bhagyanagar Ind is a copper player, and copper is a commodity. That immediately tells me the company is largely a price taker. In the latest quarter it earned ₹13 Cr on ₹577 Cr of sales—a net margin of just over 2.25%. That is thin, and it explains why the reported ROE is only 1.73%. A business earning less than 2% on its equity, while priced at 3.96 times book value, does not excite me. Graham would say price is what you pay, value is what you get; paying nearly four times book for a 1.73% ROE leaves little room for error. The growth numbers are arresting: sales up 46.35%, profits up 221.80%. But in cyclical industries, high profit growth is often a cyclical peak, not a trend. The P/E of 13.23 looks reasonable, but I must ask: are these earnings sustainable? The debt-to-equity of 1.63 is a serious concern; a leveraged commodity business can see profits evaporate when prices fall. The Piotroski score of 7/9 is a positive signal, but it measures a year's financial fitness, not a permanent moat. Promoter holding of 65.12% is good and aligns owners with management. The PEG ratio of 0.10 is eye-catching, but I distrust PEG ratios for cyclicals—they punish a stock precisely when earnings are about to change. The 52-week range of ₹86 to ₹438 shows the market knows how volatile this stock is. In my view, this is not a wonderful business at a fair price; it is a cyclical business with a leveraged balance sheet and no dividend. I would need a much stronger financial position and evidence that margins can hold through a downturn before I invest. As Graham said, margin of safety comes first.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer