MoneyWorks4Me

Check Before You Invest : Bombay Burmah Trading Corporation Ltd

BSE: 501425 NSE: BBTC ISIN: INE050A01025
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Bombay Burmah Trading Corporation Ltd belong to?
Bombay Burmah Trading Corporation Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Bombay Burmah Trading Corporation Ltd a good quality company?
Bombay Burmah Trading Corporation Ltd is a good quality company, based on a consistently good 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 Bombay Burmah Trading Corporation Ltd undervalued or overvalued?
Bombay Burmah Trading Corporation 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 8.03 -
Price to Book 1.36 43.90
Price to Sales 0.53 36.98
EV to EBITDA 2.88 129.54
Q.4 Is Bombay Burmah Trading Corporation Ltd a good buy now?
Bombay Burmah Trading Corporation 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.

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

Q.1 Revenue growth of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd revenue growth is 6.8% for FY-2026, which is below its 5-year CAGR of 7.84%, indicating slower growth.

Q.2 Gross Profit margin of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.5% for FY-2026, which is in line with its 5-year median of 16.9%, indicating stable margins.

Q.3 Operating Profit Margin of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.88% for FY-2026, which is in line with its 5-year median of 17.16% indicating stable margins.

Q.4 Net Profit Margin of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd Net Profit Margin is 12.79% for FY-2026, is above its 5-year median of 9.89%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.5 16.9
Operating Profit Margin (%) 17.88 17.16
Net Profit Margin (%) 12.79 9.89

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd Return on Asset is 18.39%, which is above its 5-year historical median of 12.28%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd Return on capital employed is 44.26% for FY-2026, which is above its 5-year historical median of 32.87%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd Return on equity is 39.44% for FY-2026, which is in line with its 5-year historical median of 39.06%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd Cash conversion cycle is -13 days, below its 5-year historical median of -11 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.52 1.3
ROE (%) 39.44 39.06
ROCE (%) 44.26 32.87
Cash Conversion Cycle -13 days -11 days

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

Q.9 Debt to Equity ratio of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd Debt-to-Equity ratio is 0.22, which is lower the industry average of 0.40, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Bombay Burmah Trading Corporation Ltd?
Bombay Burmah Trading Corporation Ltd Debt to cash flow from operations is 0.64, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bombay Burmah Trading Corporation Ltd?

Q.1 Promoter shareholding and pledge status of Bombay Burmah Trading Corporation Ltd?
Promoters hold 74.05% of the Bombay Burmah Trading Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bombay Burmah Trading Corporation Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bombay Burmah Trading Corporation Ltd vs industry peers?
Bombay Burmah Trading Corporation Ltd revenue CAGR is 7.84%, compared to the industry median CAGR of 0.79%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 6.8 0.8
Gross Profit Growth (%) 11.6 21
Operating Profit Growth (%) 9.9 18.2
Net Profit Growth (%) 13.6 24.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.52 1.26
ROE (%) 39.44 12.58
ROCE (%) 44.26 13.71
Cash Conversion Cycle (days) -13.45 44

Valuation & price assessment

Q.1 Stock return of Bombay Burmah Trading Corporation Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 9.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
9.9% 5% 7.3% -22.3%
Q.2 Valuation ratios of Bombay Burmah Trading Corporation Ltd vs historical?
The current P/E ratio of 8.03 is higher than its historical median of , 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 8.03 - 28.71
Price to Book 1.36 43.90 2.99
Price to Sales 0.53 36.98 1.35
EV to EBITDA 2.88 129.54 11.85

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