1. At a Glance
Bhagwati Autocast Ltd is that quiet foundry stock which suddenly woke up one fine morning and decided to flex. Market cap of ~₹176 Cr, stock price hovering around ₹610, and a 3-month return of ~23% with a 6-month return crossing 84%. Not bad for a company that literally melts iron for a living.
Latest quarterly numbers (Dec 2025) show sales of ₹42.9 Cr, PAT of ₹3.54 Cr, and a YoY profit growth of 151%. Operating margins are flirting with 16%, ROCE is ~17.6%, and debt is still behaving like a disciplined middle-class kid at just ₹11.2 Cr. Promoters hold a chunky ~74%, with zero pledge. Dividend yield exists (0.41%), so yes, they do remember shareholders on Diwali.
But pause. This is still a tractor-linked foundry, dependent on a handful of OEMs. So the big question: is this a structural rerating story or just a cyclical tractor party where the DJ might leave early? Let’s melt the data and cast some clarity.
2. Introduction
Bhagwati Autocast is not a flashy EV or AI stock. It doesn’t talk about “platforms” or “ecosystems.” It talks in tonnes, castings, and tractor housings. Incorporated in 1984, this is a proper old-school foundry player from Gujarat, supplying CI and SGI castings mainly to tractor and automotive OEMs.
For decades, this stock slept peacefully while investors chased shinier toys. Then tractor demand picked up, margins improved, operating leverage kicked in, and suddenly Bhagwati Autocast showed up on momentum screens wearing a ₹600 price tag.
The irony? Sales growth over 5 years is still a sleepy ~6–7% CAGR. But profits? Oh, profits woke up angry—5-year profit CAGR ~23%, and TTM profit growth ~69%. This is classic margin expansion + operating leverage + low base effect.
So are we looking at a boring but improving foundry, or a fragile business riding one good agri cycle? And more importantly—how much optimism is already baked into ₹610?
3. Business Model – WTF Do They Even Do?
Bhagwati Autocast does exactly what the name says. It autocasts. Specifically:
- CI (Cast Iron) & SGI (Spheroidal Graphite Iron)
- castings
- Weight range: 40 kg to 140 kg
- Used in tractors, transmissions, and general engineering
Product Breakdown (In Simple English)
For Tractors:
- Cylinder blocks
- Crank cases
- Hydraulic lift housings
- Gearbox & clutch housings
- Differential housings
- Front axle supports
For General Engineering:
- Gear housings
- Power transmission housings
If Mahindra or Escorts Kubota makes a tractor, there’s a decent chance Bhagwati has supplied some heavy iron inside it.
Manufacturing Setup
- Single plant near Ahmedabad
- DISA Flex-70 high-pressure moulding line
- Installed capacity: ~18,000 MTPA
This is not a mega foundry. It’s a small, focused, OEM-aligned supplier. And that’s both a strength and a risk.
Client Concentration
Here’s the elephant in the foundry:
- Bulk of revenue comes from just 3 tractor OEMs
Great when tractors are selling like hot jalebis.
Terrifying when monsoon or farm incomes sneeze.
So yes, the business model is simple, efficient, and brutally cyclical.
4. Financials Overview
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 42.90 | 31.67 | 42.70 | 35.5% | 0.5% |
| EBITDA | 6.85 | 2.85 | 5.85 | 140%+ | 17% |
| PAT | 3.54 | 1.41 | 3.61 | 151% | -1.9% |
| EPS (₹) | 12.29 | 4.89 | 12.53 | 151% | -1.9% |
Annualised EPS (Q3 rule applied correctly):
Average of Q1, Q2, Q3 EPS × 4
→ (~9.51 + 12.53 + 12.29) / 3 × 4 ≈ ₹46
Current price ₹610 → P/E ~13.2, which broadly matches reported numbers.
Commentary
- Revenue growth is solid, but margin expansion is the real hero
- OPM jumped to ~16%, highest in many years
- Slight QoQ PAT dip is not alarming—normal cost
