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Check Before You Invest : Bhagyanagar India Ltd

BSE: 512296 NSE: BHAGYANGR ISIN: INE458B01036
  |   Sector:  Metals & Mining   |   Industry:  Metal - Non Ferrous

Snapshot

Q.1 Which industry/sub-sector does Bhagyanagar India Ltd belong to?
Bhagyanagar India Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.
Q.2 Is Bhagyanagar India Ltd a good quality company?
Bhagyanagar India 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 Bhagyanagar India Ltd undervalued or overvalued?
Bhagyanagar India 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 402.88 66.89
Price to Book 5 1.36
Price to Sales 151.13 0.24
EV to EBITDA 149.85 16.25
Q.4 Is Bhagyanagar India Ltd a good buy now?
Bhagyanagar India 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 Bhagyanagar India Ltd?
Bhagyanagar India Ltd revenue growth is -99.3% for FY-2025, which is below its 5-year CAGR of -59.82%, indicating slower growth.

Q.2 Gross Profit margin of Bhagyanagar India Ltd?
Bhagyanagar India Ltd Gross profit margin which is the profit after deduction of direct costs, is 84.2% for FY-2025, which is above its 5-year median of 1.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Bhagyanagar India Ltd?
Bhagyanagar India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.8% for FY-2025, which is above its 5-year median of 1.35% indicating increasing margins.

Q.4 Net Profit Margin of Bhagyanagar India Ltd?
Bhagyanagar India Ltd Net Profit Margin is 27.65% for FY-2025, is above its 5-year median of 0.44%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 84.2 1.1
Operating Profit Margin (%) 13.8 1.35
Net Profit Margin (%) 27.65 0.44

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Bhagyanagar India Ltd?
Bhagyanagar India Ltd Return on Asset is 0.8%, which is below its 5-year historical median of 1.76%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Bhagyanagar India Ltd?
Bhagyanagar India Ltd Return on capital employed is 1.29% for FY-2025, which is below its 5-year historical median of 5.96%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Bhagyanagar India Ltd?
Bhagyanagar India Ltd Return on equity is 0.83% for FY-2025, which is below its 5-year historical median of 3.46%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Bhagyanagar India Ltd?
Bhagyanagar India Ltd Cash conversion cycle is 73 days, above its 5-year historical median of 41 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) 0.03 2.98
ROE (%) 0.83 3.46
ROCE (%) 1.29 5.96
Cash Conversion Cycle 73 days 41 days

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

Q.9 Debt to Equity ratio of Bhagyanagar India Ltd?
Bhagyanagar India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.39, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Bhagyanagar India Ltd?
Bhagyanagar India Ltd Debt to cash flow from operations is 0.14, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bhagyanagar India Ltd?

Q.1 Promoter shareholding and pledge status of Bhagyanagar India Ltd?
Promoters hold 64.84% of the Bhagyanagar India Ltd, with 96.09% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bhagyanagar India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bhagyanagar India Ltd vs industry peers?
Bhagyanagar India Ltd revenue CAGR is -59.82%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -99.3 -
Gross Profit Growth (%) -92 24.7
Operating Profit Growth (%) -87.5 15.9
Net Profit Growth (%) -97.4 22.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.03 2.38
ROE (%) 0.83 4.28
ROCE (%) 1.29 8.46
Cash Conversion Cycle (days) 73.47 51

Valuation & price assessment

Q.1 Stock return of Bhagyanagar India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 32.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
32.4% 37.5% 76.8% 233.2%
Q.2 Valuation ratios of Bhagyanagar India Ltd vs historical?
The current P/E ratio of 402.88 is higher than its historical median of 66.89, indicating that the stock is trading above 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 402.88 66.89 27.16
Price to Book 5 1.36 2.29
Price to Sales 151.13 0.24 0.62
EV to EBITDA 149.85 16.25 12.16

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