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Check Before You Invest : Bhagwati Autocast Ltd

BSE: 504646 NSE: ISIN: INE106G01014
  |   Sector:  Automobiles   |   Industry:  Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does Bhagwati Autocast Ltd belong to?
Bhagwati Autocast Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.
Q.2 Is Bhagwati Autocast Ltd a good quality company?
Bhagwati Autocast Ltd is a average quality company, based on a somewhat consistent 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 Bhagwati Autocast Ltd undervalued or overvalued?
Bhagwati Autocast Ltd appears 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 12.99 16.53
Price to Book 2.95 2.69
Price to Sales 1 0.75
EV to EBITDA 7.56 10.22
Q.4 Is Bhagwati Autocast Ltd a good buy now?
Bhagwati Autocast Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd revenue growth is 4.2% for FY-2025, which is below its 5-year CAGR of 6.85%, indicating slower growth.

Q.2 Gross Profit margin of Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.4% for FY-2025, which is in line with its 5-year median of 8.4%, indicating stable margins.

Q.3 Operating Profit Margin of Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.84% for FY-2025, which is in line with its 5-year median of 8.84% indicating stable margins.

Q.4 Net Profit Margin of Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd Net Profit Margin is 4.4% for FY-2025, is in line with its 5-year median of 4.4%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 8.4 8.4
Operating Profit Margin (%) 8.84 8.84
Net Profit Margin (%) 4.4 4.4

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd Return on Asset is 8.06%, which is in line with its 5-year historical median of 8.06%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd Return on capital employed is 18.29% for FY-2025, which is in line with its 5-year historical median of 18.29%. 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 Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd Return on equity is 14.1% for FY-2025, which is in line with its 5-year historical median of 14.1%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd Cash conversion cycle is 40 days, in line with its 5-year historical median of 40 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.83 1.91
ROE (%) 14.1 14.1
ROCE (%) 18.29 18.29
Cash Conversion Cycle 40 days 40 days

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

Q.9 Debt to Equity ratio of Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd Debt-to-Equity ratio is 0.24, which is lower the industry average of 0.28, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Bhagwati Autocast Ltd?
Bhagwati Autocast Ltd Debt to cash flow from operations is 1.12, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bhagwati Autocast Ltd?

Q.1 Promoter shareholding and pledge status of Bhagwati Autocast Ltd?
Promoters hold 74.06% of the Bhagwati Autocast Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bhagwati Autocast Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bhagwati Autocast Ltd vs industry peers?
Bhagwati Autocast Ltd revenue CAGR is 6.85%, compared to the industry median CAGR of 7.17%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 4.2 7.2
Gross Profit Growth (%) - 22.1
Operating Profit Growth (%) -7.7 17.9
Net Profit Growth (%) -14.3 32
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.83 1.2
ROE (%) 14.1 9.78
ROCE (%) 18.29 11.21
Cash Conversion Cycle (days) 39.54 73

Valuation & price assessment

Q.1 Stock return of Bhagwati Autocast Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 26.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
26.9% 31.2% 23.1% 67.7%
Q.2 Valuation ratios of Bhagwati Autocast Ltd vs historical?
The current P/E ratio of 12.99 is lower than its historical median of 16.53, 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 12.99 16.53 21.74
Price to Book 2.95 2.69 2.46
Price to Sales 1 0.75 1.52
EV to EBITDA 7.56 10.22 11.88

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