20% Upper Circuit: Stock Skyrockets After Reporting 151% YoY Increase in Net Profit

Synopsis: Auto Components & Equipment company shares hit the 20% upper circuit after strong Q3 results, with revenue up 35% YoY to ₹42.9 crore, net profit jumping 151% YoY to ₹3.54 crore in Q3 FY26, and its earnings per share (EPS) for the quarterly period stood at ₹12.29.

The shares of the Micro-Cap company specializing in manufacturing high-duty grey iron, ductile iron, and Spheroidal Graphite (SG) iron castings, primarily for the automobile and tractor industries, are in focus following their Q3 results, with a 151 percent jump in profit.

With a market capitalization of Rs. 187.55 Crores on the Day’s Trade, the shares of Bhagwati Autocast Ltd hit a 20 percent upper circuit, reaching a high of Rs. 670.70 compared to its previous close of Rs. 558.95.

What Happened

Bhagwati Autocast Ltd, engaged in manufacturing high-duty grey iron, ductile iron, and Spheroidal Graphite (SG) iron castings, primarily for the automobile and tractor industries, is in the spotlight today as it has announced its Q3 results as follows:

Its Revenue from operations rose by 35 percent YoY from Rs. 31.7 Crores in Q3FY25 to Rs. 42.9  Crores in Q3FY26, and it rose by 0.5 percent QoQ from Rs. 42.7  Crores in Q2FY26 to Rs. 42.9  Crores in Q3FY26.

Its Net Profit YoY rose by 151 percent from Rs. 1.41 Crores in Q3FY25 to Rs. 3.54 Crores in Q3FY26, and on a QoQ basis, it declined by 2 percent from Rs. 3.61 Crores in Q2FY26 to Rs. 3.54 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 12.29, compared to Rs. 4.91  in the previous year’s quarter.

Bhagwati Autocast Limited is an Indian public limited company headquartered in Ahmedabad, Gujarat. The company operates in the manufacturing sector and specializes in the production of high-duty cast iron (CI) and spheroidal graphite iron (SGI) castings. These castings are used as critical components across a wide range of industries, including automobiles (passenger cars, commercial vehicles, and tractors), compressors, hydraulics, wind power, refrigeration, plastics machinery, and general engineering applications.

The Bhagwati Group, promoted by Dr. Ing. P. N. Bhagwati, Ph.D. in Foundry Engineering from Aachen, Germany, operates two foundry units—Bhagwati Spherocast Pvt. Ltd. and Bhagwati Autocast Ltd. Under his visionary leadership, both units have grown significantly and today rank among the most sought-after and preferred casting suppliers in the transmission and automotive segments. The combined installed capacity of the two foundry units is 40,000 metric tonnes per annum.

Bhagwati Autocast’s product portfolio includes castings for engine components, gearbox housings, differential casings, and other heavy-duty parts supplied to leading OEMs (Original Equipment Manufacturers). With a strong manufacturing base in Gujarat, the company follows stringent quality standards to ensure reliability, consistency, and performance in its industrial castings.

The company shows strong capital efficiency and profitability, with a ROCE of 17.6% and ROE of 13.5%, indicating effective use of both total capital and shareholder funds. A low debt-to-equity ratio of 0.22 reflects a healthy balance sheet with limited leverage risk, giving the company financial stability and flexibility for future growth.

The stock P/E of 15.2 is significantly lower than the industry average of 28.4, while a PEG ratio of 0.15 suggests the stock is undervalued relative to its growth potential. Backed by a solid profit growth CAGR of 22.9% over the last five years, the company combines strong fundamentals with reasonable valuation, making it compelling from a long-term perspective.

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