MoneyWorks4Me

Check Before You Invest : Bajel Projects Ltd

BSE: 544042 NSE: BAJEL ISIN: INE0KQN01018
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Bajel Projects Ltd belong to?
Bajel Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Bajel Projects Ltd a good quality company?
Bajel Projects 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 Bajel Projects Ltd undervalued or overvalued?
Bajel Projects 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 3-year
Historic Median
Price to Earnings 79.04 130.57
Price to Book 3.37 3.46
Price to Sales 0.82 0.85
EV to EBITDA 19.41 22.13
Q.4 Is Bajel Projects Ltd a good buy now?
Bajel Projects Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Bajel Projects Ltd?
Bajel Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.2% for FY-2026, which is above its 3-year median of 1.5%, indicating increasing margins.

Q.2 Operating Profit Margin of Bajel Projects Ltd?
Bajel Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.01% for FY-2026, which is above its 3-year median of 2.66% indicating increasing margins.

Q.3 Net Profit Margin of Bajel Projects Ltd?
Bajel Projects Ltd Net Profit Margin is 0.97% for FY-2026, is above its 3-year median of 0.6%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 2.2 1.5
Operating Profit Margin (%) 4.01 2.66
Net Profit Margin (%) 0.97 0.6

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Bajel Projects Ltd?
Bajel Projects Ltd Return on Asset is 1.21%, which is above its 3-year historical median of 0.94%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Bajel Projects Ltd?
Bajel Projects Ltd Return on capital employed is 11.29% for FY-2026, which is above its 3-year historical median of 10.62%. 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 Bajel Projects Ltd?
Bajel Projects Ltd Return on equity is 4.36% for FY-2026, which is above its 3-year historical median of 2.71%, indicating the business is making better use of its shareholders capital.

Q.7 Cash conversion cycle of Bajel Projects Ltd?
Bajel Projects Ltd Cash conversion cycle is 86 days, above its 3-year historical median of 60 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.26 1.58
ROE (%) 4.36 2.71
ROCE (%) 11.29 10.62
Cash Conversion Cycle 86 days 60 days

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

Q.8 Debt to Equity ratio of Bajel Projects Ltd?
Bajel Projects Ltd Debt-to-Equity ratio is 0.53, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Bajel Projects Ltd?
Bajel Projects Ltd Debt to cash flow from operations is 16.6, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bajel Projects Ltd?

Q.1 Promoter shareholding and pledge status of Bajel Projects Ltd?
Promoters hold 62.53% of the Bajel Projects Ltd, with 2.55% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bajel Projects Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bajel Projects Ltd vs industry peers?
Bajel Projects Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 15.92%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 15.9
Gross Profit Growth (%) 64.9 39.1
Operating Profit Growth (%) 62.3 34.4
Net Profit Growth (%) 80 50.9
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.26 0.82
ROE (%) 4.36 11.68
ROCE (%) 11.29 14.98
Cash Conversion Cycle (days) 85.71 53

Valuation & price assessment

Q.1 Stock return of Bajel Projects Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -18.27% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -18.3%
Q.2 Valuation ratios of Bajel Projects Ltd vs historical?
The current P/E ratio of 79.04 is lower than its historical median of 130.57, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 79.04 130.57 22.41
Price to Book 3.37 3.46 1.92
Price to Sales 0.82 0.85 1.65
EV to EBITDA 19.41 22.13 12.04

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