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Check Before You Invest : Bhagawati Gas Ltd

BSE: 500051 NSE: BAGWATIGAS ISIN: INE099C01010
  |   Sector:  Oil & Gas   |   Industry:  Industrial Gases & Fuels

Snapshot

Q.1 Which industry/sub-sector does Bhagawati Gas Ltd belong to?
Bhagawati Gas Ltd belongs to the Oil & Gas sector, operating specifically within the Industrial Gases & Fuels segment.
Q.2 Is Bhagawati Gas Ltd a good quality company?
Bhagawati Gas Ltd is a quality company, based on a 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 Bhagawati Gas Ltd undervalued or overvalued?
Bhagawati Gas Ltd appears Fair, as its key valuation ratios are in line with 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 - 1.10
Price to Book 0.64 0.05
Price to Sales 21.23 0.80
EV to EBITDA -7.59 -8.73
Q.4 Is Bhagawati Gas Ltd a good buy now?
Bhagawati Gas 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.

Q.1 Gross Profit margin of Bhagawati Gas Ltd?
Bhagawati Gas Ltd Gross profit margin which is the profit after deduction of direct costs, is 221.3% for FY-2025, which is above its 5-year median of 43.6%, indicating increasing margins.

Q.2 Operating Profit Margin of Bhagawati Gas Ltd?
Bhagawati Gas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -555.39% for FY-2025, which is in line with its 5-year median of -555.39% indicating stable margins.

Q.3 Net Profit Margin of Bhagawati Gas Ltd?
Bhagawati Gas Ltd Net Profit Margin is 30.85% for FY-2025, is in line with its 5-year median of 30.85%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 221.3 43.6
Operating Profit Margin (%) -555.39 -555.39
Net Profit Margin (%) 30.85 30.85

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Bhagawati Gas Ltd?
Bhagawati Gas Ltd Return on Asset is 0.75%, which is in line with its 5-year historical median of 0.75%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Bhagawati Gas Ltd?
Bhagawati Gas Ltd Return on capital employed is 7.22% for FY-2025, which is above its 5-year historical median of 1.44%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Bhagawati Gas Ltd?
Bhagawati Gas Ltd Return on equity is 0.98% for FY-2025, which is in line with its 5-year historical median of 0.98%, indicating the business is making similar use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Bhagawati Gas Ltd?
Bhagawati Gas Ltd Debt-to-Equity ratio is 0.19, which is above the industry average of 0.05, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Bhagawati Gas Ltd?
Bhagawati Gas Ltd Debt to cash flow from operations is -1.09, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bhagawati Gas Ltd?

Q.1 Promoter shareholding and pledge status of Bhagawati Gas Ltd?
Promoters hold 34.23% of the Bhagawati Gas Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bhagawati Gas Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bhagawati Gas Ltd vs industry peers?
Bhagawati Gas Ltd revenue CAGR is 16.98%, compared to the industry median CAGR of 1.69%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 1.7
Gross Profit Growth (%) 292.3 17.8
Operating Profit Growth (%) 0 13.9
Net Profit Growth (%) 0 17.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.02 0.82
ROE (%) 0.98 3.78
ROCE (%) 7.22 5.33
Cash Conversion Cycle (days) 1816.9 48

Valuation & price assessment

Q.1 Stock return of Bhagawati Gas Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 26% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
26% 58.8% 116.1% 909.4%
Q.2 Valuation ratios of Bhagawati Gas Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 1.10, 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 - 1.10 11.53
Price to Book 0.64 0.05 2.25
Price to Sales 21.23 0.80 1.37
EV to EBITDA -7.59 -8.73 5.42

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