Altman Z″
Needs current assets and current liabilities.
BLEL · Steel & Iron Products · INE1EEM01017
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Originally incorporated in 1995 as Behari Lal Ispat Private Limited, Behari Lal Engineering Limited (BLEL) is a leading integrated foundry and steel manufacturer based in Mandi Gobindgarh, Punjab. The company operates two advanced manufacturing facilities spanning approximately 790,000 square feet with a combined installed capacity of 119,690 MTPA. BLEL’s specialized product mix includes metal rolls for rolling mills, engineering castings ranging from 500 kg to 20 MT, and alloy steel rolled products, serving a highly diversified set of end-use industries such as automotive, infrastructure, mining, power, aerospace, and defense. Following a major consolidation, the company merged Belco Special Steels Private Limited and Parkash Multimetals Private Limited into its operations, establishing its current integrated SMS, foundry, and rolling mill divisions. Sourcing raw materials (scrap steel and ferroalloys) directly from automobile OEMs and PSUs to eliminate intermediaries, the company has scaled to a revenue from operations of ₹5,340.25 million in FY26. BLEL maintains long-standing relationships with over 1,700 customers, with repeat clients accounting for 84.69% of FY26 revenues. It has also developed a decent global footprint, exporting products to 21 countries across 5 continents.
BLEL holds a competitive advantage as the only player in India with a product mix spanning metal rolls, engineered castings, and alloy steel products, allowing it to optimize resources and mitigate industry-specific risks. Its technical capabilities are validated by exclusive approvals and certifications from stringent regulatory bodies, including the Research Designs and Standards Organisation (RDSO), the Indian Defence sector, and Metso Corporation. These approvals require long gestation periods and rigorous audits, acting as high entry barriers. Additionally, its bulk-purchasing of scrap directly from automobile OEMs and PSUs eliminates intermediaries, securing a durable cost and quality advantage.
Behari Lal Engineering Limited is an integrated iron and steel manufacturing company in India specializing in customized engineering solutions. The company operates across steel melting, foundry, and rolling mill divisions, generating revenue primarily from the manufacture and sale of customized steel products such as alloy steel products, metal rolls, and engineering castings.
Source: RHP p. 291, 299, 300, 316
Where the revenue came from, as the document splits it.
| Name | Pct | Source |
|---|---|---|
| Alloy Steel Products | 45.81 | RHP p. 288, 307 |
| Metal Rolls | 26.35 | RHP p. 288, 307 |
| Engineering Castings | 19.54 | RHP p. 288, 307 |
| Forging Ingots and Forged Shafts / Blocks | 4.4 | RHP p. 288, 307 |
| Job Work Income | 2.35 | RHP p. 288, 307 |
| Others | 1.55 | RHP p. 288, 307 |
According to the CRISIL Report, the Indian steel and customized components industry is undergoing significant growth driven by domestic infrastructure development and industrial expansion. The domestic steel demand grew at a 11.6% CAGR between Fiscals 2020 and 2026. The demand for metal rolls, which is positively correlated with finished steel production, grew at a 7.9% CAGR during Fiscals 2020-2026 and is projected to continue expanding as hot and cold rolling mills scale up. Concurrently, the Indian engineering castings (foundry) market, driven by automotive, energy, and defense sectors, is seeing a shift toward high-precision, lightweight, and automated production. The market is increasingly consolidating toward large and medium-sized organized players who benefit from technological superiority and economies of scale, while unorganized players continue to lose market share.
Growth rate: 8.0% to 9.0% CAGR (Fiscals 2026-2031) for the Indian foundry/castings market
Market size: 15.0-15.5 million tonnes (Fiscal 2026) (Indian Engineering Castings Demand)
Sector slug: steel-and-castings
Source: RHP p. 204, 210, 240, 254
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Jayaswal Neco Industries Limited | 18.48 | 16.39 | RHP p. 156 | ||
| AIA Engineering Limited | 34.43 | 15.53 | RHP p. 156 | ||
| Steelcast Limited | 37.99 | 21.89 | RHP p. 156 | ||
| RHI Magnesita India Limited | -10.81 | RHP p. 156 | |||
| Vardhman Special Steel Limited | 23.19 | 9.59 | RHP p. 156 | ||
| IFGL Refractories Limited | 43.46 | 7.93 | RHP p. 156 | ||
| Kennametal India Limited | 62.02 | 13.7 | RHP p. 156 |
As presented in the offer document. Post-listing figures are in the statements above.
| Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived | Cff cr |
|---|---|---|---|---|---|---|---|
| FY26 | 64.636 | 101.328 | 12.1% | 534.025 | yes | 8.71 | |
| FY25 | 52.951 | 81.312 | 10.43% | 507.912 | yes | -40.223 | |
| FY24 | 35.791 | 60.986 | 8.02% | 446.084 | yes | 13.765 |
Written before listing, answered from the document itself.
Where is the money going?
Net proceeds from the ₹93.00 crore Fresh Issue are deployed for: ₹19.59 crore for advanced machinery and civil works at Manufacturing Facility 1, ₹36.65 crore for machinery and civil works at Manufacturing Facility 2, ₹6.80 crore for new rooftop solar panels across both facilities, with the remaining portion allocated for general corporate purposes.
RHP p. 123, 128, 129
How concentrated is the customer base?
The customer base is moderately diversified. The top 10 customers collectively contributed ₹2,029.21 million, representing 38.00% of revenue from operations in FY26 (compared to 39.91% in FY25 and 37.81% in FY24). No single customer contributes 10% or more of total revenues.
RHP p. 24, 203
Is it profitable and growing?
Yes. Revenue from operations increased from ₹4,460.84 million in FY24 to ₹5,340.25 million in FY26. PAT grew at a 34.35% CAGR from ₹357.91 million in FY24 to ₹646.36 million in FY26, with operating EBITDA margin expanding from 14% to 19% over the same period.
RHP p. 77, 293, 294, 296
What sits in the footnotes / contingent liabilities?
Contingent liabilities as of March 31, 2026 total ₹35.58 million, dominated by ₹28.43 million in bank guarantees and ₹7.15 million in disputed GST tax audits (contested under appeal via a writ petition before the High Court of Punjab and Haryana). Footnotes also reveal that educational qualification certificates for two directors (Parkash Chand Garg and Rajesh Garg) are untraceable and rely on affidavits, and highlight a historical related-party interest-free loan of ₹240.32 million granted to promoter-controlled BLC Metals Private Limited.
RHP p. 45, 84, 430, 433
What the issue priced at, on the figures in the document.
| Date | Name | Shares | Price per share | Category | Source |
|---|---|---|---|---|---|
| 2024-01-20 | SG Tech Engineering Private Limited (previously known as Homedge Infracon Private Limited) | 780787 | 448.26 | financial investor | RHP p. 101, 107, 531 |
| 2024-02-22 | Anubhav Gupta Investments (through Anubhav Gupta) | 78078 | 448.26 | financial investor | RHP p. 101, 107, 531 |
Ceo: Bhuvnesh Garg (Chief Executive Officer)
Outstanding tax litigations against the Company are 4 cases involving an aggregate quantified amount of ₹8.21 million (comprising ₹0.17 million in direct tax and ₹8.04 million in indirect tax). There are also 2 direct tax cases against the promoters involving ₹0.85 million. No criminal or statutory proceedings exist.
Promoters and members of the Promoter Group hold 34,553,485 Equity Shares, representing 88.51% of the pre-Offer paid-up Equity Share capital. None of the shares held by the Promoters are pledged or otherwise encumbered.
Restated financial statements do not contain any auditor qualifications or reservations. Footnotes disclose material related-party transactions in previous years, including a ₹240.32 million interest-free loan to promoter-controlled trading entity BLC Metals Private Limited (repaid in full in FY24), and the redemption of ₹94.00 million of preference shares to BLC Metals in FY25.
Source: RHP p. 45, 46, 118, 121, 433, 495, 497
A change between the two filings is a disclosure in itself.
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
Operating cash is 43% of trailing profit. On its own this can be working-capital timing in a growth year — worth watching whether it persists.
Why this reading: Kept at caution, not flagged: it is a single-year gap and the multi-year cash record does not (yet) show a repeated shortfall. One soft year is not a verdict.
Operating cash ₹28 cr vs trailing profit ₹65 cr. A one-year gap below 0.5 is often growth working capital; it becomes a real concern only if it recurs.
Net margin improved from 10.5% to 12.5% year-on-year — the business is keeping more of each rupee.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Quarter net margin 12.5% vs 10.5% four quarters earlier. Expansion from operating leverage is healthy; verify it is not a one-off gain.
Free cash flow is positive and consistent — the business funds itself after capex.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Latest free cash flow ₹1 cr. Negative in only 1 of 4 years. A self-funding business needs less external capital and dilutes less.
Borrowings have fallen 56% over two years — the balance sheet is getting lighter.
Why this reading: A positive signal in the numbers, shown for balance alongside the concerns.
Borrowings down to ₹18 cr from ₹41 cr. Falling debt reduces finance cost and financial risk.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 11.1% of assets. Free cash flow negative in 1 of 4 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital is going in far faster than revenue is coming out. For a business mid-build that is expected — the test is whether it converts.
cumulative operating cash flow ÷ cumulative net profit
₹140 cr ÷ ₹183 cr, over 4 years
0.77×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹65 − ₹28) cr ÷ average assets
11.1%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
12.2% × 1.45 × 1.20
21.2%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹89 cr ÷ ₹2 cr
44.50×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹18 cr ÷ ₹306 cr
0.06×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +54% vs revenue +15%, FY2023 to FY2026
38pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
The growth rate that makes today's market value equal the discounted cash flows, at a 11.5% discount rate and 4.0% terminal growth. Not a forecast — the arithmetic of what is already in the price. Compare it with what the business has actually delivered.
Reverse DCF — the growth already in the price — A standard inversion of discounted cash flow, used to avoid the forecasting problem entirely.
Instead of forecasting cash flows and deriving a value, it takes today's market value as given and solves for the growth rate that would justify it. The output is not a view — it is the arithmetic of what the market is currently assuming.
How to read itCompare it with what the business has actually delivered. A price implying 30% a year against a decade of 15% is a demanding assumption; the reverse is a modest one.
Where it failsUseless when free cash flow is negative or unusually depressed, which is common mid-capex. Highly sensitive to the discount rate — a point either way moves the answer materially.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 70.84% to 70.84% across these quarters.
FII held steady from 1.81% to 1.81% across these quarters.
MF held steady from 2.94% to 2.94% across these quarters.
Other held steady from 24.41% to 24.41% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Debtor days
How long customers take to pay | 52 | 67 | 56 | 66 |
| Inventory days
How long stock sits before it sells | 67 | 80 | 103 | 136 |
| Payable days
How long the company takes to pay suppliers | 13 | 14 | 31 | 26 |
| Cash conversion cycle
Debtor + inventory − payable days | 106 | 133 | 128 | 175 |
| Working capital days | 61 | 72 | 81 | 103 |
| ROCE %
Return on capital employed | — | 25.0% | 29.0% | 31.0% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Revenue from operations | 462 | 445 | 507 | 533 |
| Other income | 5 | 4 | 8 | 12 |
| Depreciation | 8 | 9 | 11 | 13 |
| Finance cost | 4 | 2 | 1 | 2 |
| Profit before tax | 38 | 50 | 69 | 87 |
| Net profit (owners) | 29 | 36 | 53 | 65 |
| EPS (₹) | 72.00 | 73.66 | 67.82 | 16.56 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Jun 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|
| Revenue | 128 | 131 | 152 |
| Other Income | 1 | 7 | 2 |
| Expenses | 106 | 108 | 124 |
| Depreciation | 3 | 4 | 4 |
| Finance cost | 0 | 0 | 0 |
| Profit before tax | 21 | 26 | 26 |
| Net Profit | 15 | 21 | 19 |
| EPS | 3.95 | 5.48 | 4.92 |
| Item | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Equity Capital | 4 | 5 | 8 | 39 |
| Reserves | 116 | 189 | 234 | 267 |
| Borrowings | 64 | 41 | 8 | 18 |
| Net block | 60 | 67 | 83 | 96 |
| CWIP | 5 | 4 | 4 | 4 |
| Investments | 3 | 3 | 0 | 0 |
| Total Assets | 203 | 262 | 296 | 368 |
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Cash from operations | 13 | 37 | 62 | 28 |
| Cash from investing | -21 | -52 | -20 | -38 |
| Cash from financing | 9 | 14 | -40 | 9 |
| Free cash flow | -8 | 22 | 36 | 1 |
| Net change in cash | 1 | -1 | 2 | -1 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.