Bengal Tea & Fabrics Ltd

Bengal Tea & Fabrics Ltd (BENGALT) is a micro-cap Consumer Goods company valued at ₹125 crore operating in Tea & Coffee on the NSE and BSE.

What changed?

Bengal Tea & Fabrics Ltd last traded at ₹142.95, up 3.59% on the day.

Recent developments

2026-09-07: The DocStoX verdict changed to buy as the score improved, reflecting stronger earnings growth. 2026-07-16: The score was 6.7, but it rose to 7.2 by 2026-09-07, indicating increased confidence in earnings growth.

Is the business improving?

The company's business is deteriorating, with annual revenue falling 3.0% and net profit plunging 94.6%. However, the latest quarter shows a rebound, with net profit rising 34.8% compared to the same quarter a year earlier, though revenue remained flat. Margins have collapsed, with the net profit margin dropping 145.8 percentage points to 8.5%, and returns are weak, with return on equity at 2.3%.

Is it expensive?

The stock trades at 28.6 times earnings, 0.66 times book value. It yields 1.1%.

What could go wrong?

The company's net profit margin has collapsed, which could signal operational inefficiencies or one-time charges. The sharp drop in annual net profit suggests underlying issues with profitability. The recent quarter's net profit rebound may not be sustainable if margins do not improve.

DocStoX conclusion

DocStoX rates BENGALT as “buy”, scoring 7.0/10 with 61% confidence. The DocStoX verdict of buy follows from strong earnings growth, despite weak business quality and price momentum. The most critical factor is the recent surge in net profit, which could signal a turnaround, though the collapse in margins remains a concern.

Analysis written by DocStoX's model on 2026-09-08 from company filings and market data · verdict updated 2026-09-08. Informational only, not investment advice. Consult a SEBI-registered adviser before investing.