Bhartiya Intl. (BIL)
CyclicalFairStock Score: 47/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹837.4 |
| Market Cap | ₹1,122.99 Cr |
| P/E Ratio | 82.67 |
| ROCE | 8.85% |
| ROE | 9.17% |
| Dividend Yield | 0% |
| Profit Growth | 213% |
| Debt/Equity | 1.11 |
| Sales Growth | 33.8% |
| Promoter Holding | 61.17% |
| 52-Week Range | ₹602 — ₹1,149 |
| Sector | Consumer Durables |
| Book Value | ₹368.12 |
Strengths
- Sales growth of 39.16% shows strong demand traction.
- Piotroski F-score of 7/9 indicates improving financial health.
- Promoter holding of 61.17% aligns management with minority shareholders.
- Latest quarter sales of ₹366 Cr provide scale and possible operating leverage.
Concerns
- Net profit margin is very thin: ₹7 Cr on ₹366 Cr sales, below 2%.
- ROE of 9.17% and ROCE of 8.85% are low, while debt/equity is 1.04.
- P/E of 27.37 and P/B of 2.93 look expensive for the current returns.
- Profit growth of 543.71% is from a low base and is unlikely to sustain.
AI Analysis
Let me begin with what I can measure. Bhartiya Intl. earns a return on equity of only 9.17% and a return on capital employed of 8.85%. With debt-to-equity at 1.04, those returns are too modest for the financial risk being taken. In Graham's language, this is not a defensive investment. The 543.71% profit growth looks tempting, but I look behind the percentage. In the latest quarter, sales were ₹366 Cr and net profit was only ₹7 Cr. That is a net margin under 2%. Such a thin margin tells me the company has little pricing power in the competitive leather products business. Sales grew 39.16%, and that is good, but in a cyclical industry growth often appears just before margins compress. The Piotroski score of 7/9 says the financial position is improving, and promoter holding of 61.17% does align owners with public shareholders. Yet I cannot ignore valuation. At ₹804.25, the P/E is 27.37 and price-to-book is 2.93. Paying nearly three times book value for a business earning 9% on equity is not a margin-of-safety investment. There is no dividend yield, so the investor must rely entirely on future price appreciation. The PEG ratio of 0.09 is a trap: it uses a 543% earnings spike from a low base. If earnings normalise, the high P/E will look unjustified. I would need stronger evidence that margins and returns on capital have structurally improved. This looks more like a cyclical recovery than a durable grower. I would keep it on my watch list, but not buy at this price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer