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Check Before You Invest : Baheti Recycling Industries Ltd

BSE: 0 NSE: BAHETI ISIN: INE029Q01017
  |   Sector:  Metals & Mining   |   Industry:  Aluminium & Aluminium Products

Snapshot

Q.1 Which industry/sub-sector does Baheti Recycling Industries Ltd belong to?
Baheti Recycling Industries Ltd belongs to the Metals & Mining sector, operating specifically within the Aluminium & Aluminium Products segment.
Q.2 Is Baheti Recycling Industries Ltd a good quality company?
Baheti Recycling Industries Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Baheti Recycling Industries Ltd undervalued or overvalued?
Baheti Recycling Industries Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 23.29 36.30
Price to Book 6.94 6.90
Price to Sales 0.87 0.67
EV to EBITDA 12.81 18.99
Q.4 Is Baheti Recycling Industries Ltd a good buy now?
Baheti Recycling Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd revenue growth is 22.1% for FY-2025, which is below its 5-year CAGR of 37.74%, indicating slower growth.

Q.2 Gross Profit margin of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.9% for FY-2025, which is above its 5-year median of 2.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.75% for FY-2025, which is above its 5-year median of 3.59% indicating increasing margins.

Q.4 Net Profit Margin of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd Net Profit Margin is 3.43% for FY-2025, is above its 5-year median of 1.47%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.9 2.2
Operating Profit Margin (%) 7.75 3.59
Net Profit Margin (%) 3.43 1.47

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd Return on Asset is 8.71%, which is above its 5-year historical median of 4.94%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd Return on capital employed is 21.86% for FY-2025, which is above its 5-year historical median of 14.71%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd Return on equity is 35.75% for FY-2025, which is above its 5-year historical median of 20.66%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd Cash conversion cycle is 107 days, above its 5-year historical median of 89 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.54 2.94
ROE (%) 35.75 20.66
ROCE (%) 21.86 14.71
Cash Conversion Cycle 107 days 89 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd Debt-to-Equity ratio is 2.68, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Baheti Recycling Industries Ltd?
Baheti Recycling Industries Ltd Debt to cash flow from operations is -6.97, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Baheti Recycling Industries Ltd?

Q.1 Promoter shareholding and pledge status of Baheti Recycling Industries Ltd?
Promoters hold 74.13% of the Baheti Recycling Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Baheti Recycling Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Baheti Recycling Industries Ltd vs industry peers?
Baheti Recycling Industries Ltd revenue CAGR is 37.74%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 22.1 -
Gross Profit Growth (%) 160 13.6
Operating Profit Growth (%) 105 16.2
Net Profit Growth (%) 157.1 11
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.54 1.36
ROE (%) 35.75 5.69
ROCE (%) 21.86 9.85
Cash Conversion Cycle (days) 106.89 87

Valuation & price assessment

Q.1 Stock return of Baheti Recycling Industries Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 73.76% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 73.8% 11.9%
Q.2 Valuation ratios of Baheti Recycling Industries Ltd vs historical?
The current P/E ratio of 23.29 is lower than its historical median of 36.30, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 23.29 36.30 19.49
Price to Book 6.94 6.90 1.70
Price to Sales 0.87 0.67 0.75
EV to EBITDA 12.81 18.99 9.12

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