Bharat Coking (BHARATCOAL)
CyclicalFairStock Score: 17/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹33.69 |
| Market Cap | ₹15,247.02 Cr |
| P/E Ratio | 19.33 |
| ROCE | 28.92% |
| ROE | 2.1% |
| Dividend Yield | 0% |
| Profit Growth | -105.38% |
| Debt/Equity | 0.39 |
| Sales Growth | -3.6% |
| Free Cash Flow | ₹-5,64,37,498.88 Cr |
| Promoter Holding | 90% |
| 52-Week Range | ₹28.87 — ₹45.09 |
| Sector | Consumable Fuels |
| Book Value | ₹12.41 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
Looking at Bharat Coking, I am reminded that a low price is not the same thing as a bargain. As Graham said, price is what you pay, value is what you get. The company's return on capital employed looks respectable at 28.92%, but that is pre-leverage and does not necessarily benefit minority shareholders; the actual return on equity is just 2.10%. With book value at ₹12.16, paying ₹34.02 means 2.8 times book—expensive for a business earning a thin ROE and currently losing money. The latest quarter shows a net loss of ₹23 Cr on sales of ₹2,783 Cr, and year-on-year profit has collapsed by 105.38% while sales fell 24.55%. In a cyclical commodity like coking coal, this is exactly the point in the cycle where I get cautious: today's earnings—or losses—tell me more about the coal price than about the company's intrinsic worth. Moat? A pure commodity producer has little pricing power, so I cannot assign one. The balance sheet is not reckless; debt-to-equity is 0.39. The 90% promoter holding gives some alignment, but it also leaves little free float for minority investors and can reduce accountability. There is no dividend, so I am relying entirely on price appreciation. A Piotroski F-Score of 3/9 and a reported free cash flow of ₹-564.37 lakh Cr underline the financial strain. I cannot value this business on a P/E of 19.33 when earnings are negative and cash is going out. In short, this appears to be a cyclical business in a down phase, not a growing franchise selling at a discount. I will wait for sales growth, positive quarterly profits, and stronger cash generation before this becomes a candidate for my portfolio.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer