Bengal & Assam Company Ltd (BENGALASM)
🎯 Key Takeaways
- Bengal & Assam Company Ltd is a mature, cash-generating financial services entity operating in a stable but low-growth environment, with minimal leverage and consistent shareholder returns. Despite a recent -20% stock return over the past year, the company maintains a low P/E of 9.
- Revenue grew 0.4% QoQ to ₹633 in Q1FY27.
- ⚠️ Persistent decline in ROE and ROCE to 2.6% and 3.7% respectively raises concerns about capital efficiency despite high dividend payouts.
- Market Cap
- ₹7,003
- P/E Ratio
- 24.9
- P/B Ratio
- 0.66
- ROE
- 7.1%
- ROCE
- 3.7%
- Debt/Equity
- 0.06
- Div Yield
- 0.81%
- Promoter
- 72.9%
📖 The Story
Bengal & Assam Company Ltd is a mature, cash-generating financial services entity operating in a stable but low-growth environment, with minimal leverage and consistent shareholder returns. Despite a recent -20% stock return over the past year, the company maintains a low P/E of 9.2 and a historically high ROE and ROCE, though both have recently declined to 2.6% and 3.7% respectively. The business appears to be in a consolidation or maintenance phase, with management focusing on capital allocation efficiency rather than aggressive expansion.
📰 What's Happening
In the most recent quarter, management completed a procedural shift of the company’s registered office from West Bengal to Haryana, approved by the Regional Director of the Ministry of Corporate Affairs, following a special resolution passed in February 2026. This change, while statutory, carries no operational impact. Concurrently, the company held its 79th AGM on 8 September 2026 via video conference, where shareholders approved the audited financials, reappointed key leadership including CEO Upendra Kumar Gupta and director Vinita Singhania, and appointed Ronak Jhuthawat & Co. as secretarial auditors for five years. A final dividend of Rs. 50 per share (500% payout) was declared, requiring physical shareholders to complete KYC-dematerialisation to receive payouts. All resolutions passed with over 84% voting support, confirming governance continuity.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 573 | 642 | 531 | 630 | 633 |
| Operating Profit | 72 | 162 | 10 | 24 | 70 |
| OPM % | 12.6% | 25.2% | 1.9% | 3.8% | 11.1% |
| Net Profit | 72 | 161 | 25 | 26 | 69 |
| EPS | ₹216.99 | ₹191.94 | ₹134.98 | ₹178.05 | ₹163.63 |
The company has shown sequential improvement in profitability metrics, with operating profit margin expanding significantly from 1.9% in December 2025 to 25.2% in September 2025, before moderating to 11.1% in June 2026. Net profit rose sharply to Rs. 69 crore in June 2026 from Rs. 25 crore in December 2025, indicating strong earnings volatility likely tied to timing or non-recurring items. Despite this, revenue has remained relatively flat over the past year, hovering between Rs. 531 crore and Rs. 642 crore, suggesting limited top-line growth. Earnings per share peaked at Rs. 216.99 in June 2025 but declined to Rs. 163.63 by June 2026, reflecting profit normalization. The financial trend underscores a pattern of high profitability in certain quarters followed by consolidation, with management not highlighting any new growth drivers in recent commentary.
🔮 Management Outlook & What's Next
Management provided no forward-looking guidance in the latest filings regarding future profitability, revenue growth, or strategic initiatives. The only explicit forward-looking statement pertains to the reappointment of leadership and the procedural office shift, with no mention of new investments, market expansion, or performance expectations for upcoming quarters. The absence of guidance suggests a focus on operational stability rather than transformation or growth acceleration.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 11 | 11 | 11 | 11 |
| Reserves | 9,750 | 9,398 | 10,676 | 10,199 |
| Borrowings | 556 | 460 | 642 | 559 |
| Total Liabilities | 11,368 | 10,863 | 12,450 | 11,826 |
| Fixed Assets | 432 | 429 | 473 | 409 |
| Investments | 9,869 | 9,468 | 10,826 | 10,322 |
| Total Assets | 11,368 | 10,863 | 12,450 | 11,826 |
The balance sheet reflects a conservative capital structure with negligible debt (Total Borrowings of Rs. 642 crore as of March 2026) and strong equity reserves of Rs. 10,676 crore, indicating long-term capital accumulation. Total assets have grown modestly from Rs. 11,368 crore in March 2025 to Rs. 12,450 crore in March 2026, primarily driven by reserve growth rather than aggressive asset deployment. There is no evidence of large-scale capex or deleveraging; instead, the company appears to be maintaining a stable asset base while preserving financial flexibility, consistent with a mature, low-risk business model.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +294 | +252 |
| Investing | -286 | -202 |
| Financing | +39 | -30 |
| Net Cash Flow | +48 | +21 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 72.9% | 72.9% | 72.9% | 72.9% |
| FII | 4.4% | 4.4% | 4.4% | 4.4% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 11.7% | 11.6% | 11.5% | 11.5% |
| # Shareholders | 27,050 | 26,177 | 25,463 | 25,138 |
Promoter holding remains stable at 72.87% over the past four quarters, with no signs of dilution or stake sales. Foreign institutional investors (FII) have slightly increased their stake from 4.41% to 4.43%, while Domestic Institutional Investors (DII) remain negligible at 0.01%. The number of public shareholders has gradually declined from 27,050 to 25,138, suggesting possible consolidation in retail ownership. No pledging activity or significant changes in shareholder composition are evident, reinforcing promoter confidence and low institutional churn.
⚖️ Peer Comparison — Finance
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| BAJFINANCE | 5.98 L Cr | 29.4 | 10.4% | — | 3.82 |
| BAJAJFINSV | 2.77 L Cr | 27.3 | 11.4% | — | 5.50 |
| SHRIRAMFIN | 2.32 L Cr | 17.4 | 11.5% | — | 3.80 |
| ICICIAMC | 1.55 L Cr | 31.0 | 111.5% | — | 0.00 |
| JIOFIN | 1.43 L Cr | 67.3 | 2.3% | — | 0.17 |
| TATACAP | 1.39 L Cr | 25.4 | 8.4% | — | 5.28 |
| CHOLAFIN | 1.38 L Cr | 23.8 | 9.3% | — | 6.93 |
| BAJAJHLDNG | 1.20 L Cr | 13.6 | 12.4% | — | 0.00 |
| MUTHOOTFIN | 1.10 L Cr | 9.7 | 14.4% | — | 3.88 |
| PFC | 1.08 L Cr | 4.1 | 9.8% | — | 7.62 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Persistent decline in ROE and ROCE to 2.6% and 3.7% respectively raises concerns about capital efficiency despite high dividend payouts. 2. Earnings volatility, with sharp swings in net profit and EPS across quarters, suggests lack of predictable cash flows, potentially impacting valuation stability. 3. The company’s reliance on a stable regulatory and operational environment in its core financial services segment is unconfirmed, with no diversification or growth strategy disclosed. 4. The recent office relocation, while procedural, introduces minor execution risk if statutory clearances are delayed, though currently deemed non-material.
📋 Recent Filings
- 🔴 Insider Trading2026-10-01Bengal & Assam Company disclosed an inter-se transfer of 2,99,815 equity shares (2.63% of total voting capital) among members of Vikrampati Singhania …
- 🟡 Board Meeting2026-09-29Bengal & Assam Company Ltd announced the Regional Director of the Ministry of Corporate Affairs approved shifting its registered office from West Beng…
- Announcement2026-09-28Bengal & Assam Company Limited announces the closure of its insider trading window effective October 1, 2026, lasting until 48 hours after the quarter…
- 🟡 Board Meeting2026-09-08Bengal & Assam Company held its 79th AGM on 8 September 2026 via video conference, adopting audited financials, declaring a Rs. 50 per share dividend …
- 🟡 voting results2026-09-08At the 79th AGM held on 8th September 2026 via video conferencing, all resolutions were passed with requisite majority. Shareholders approved the audi…
🧠 Analyst's Read
Bengal & Assam Company operates as a low-growth, high-dividend financial services firm with a stable but inefficient capital structure, as evidenced by declining ROE and ROCE. While shareholder returns remain generous, the lack of strategic updates or growth visibility warrants caution. Investors should monitor future earnings consistency and any shift in capital allocation priorities, particularly regarding reinvestment versus payout discipline.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-10-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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