Bhatia Communications & Retail (India) (BOM:540956) Beneish M-Score : -2.28 (As of Dec. 14, 2024)

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What is Bhatia Communications & Retail (India) Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Bhatia Communications & Retail (India)'s Beneish M-Score or its related term are showing as below:

BOM:540956' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37 Med: -2.28 Max: -0.25
Current: -2.28

During the past 12 years, the highest Beneish M-Score of Bhatia Communications & Retail (India) was -0.25. The lowest was -3.37. And the median was -2.28.

Bhatia Communications & Retail (India) Beneish M-Score Historical Data

The historical data trend for Bhatia Communications & Retail (India)'s Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Bhatia Communications & Retail (India) Beneish M-Score Chart

Bhatia Communications & Retail (India) Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-0.41

-2.28

-2.08

-2.81

-2.28

Bhatia Communications & Retail (India) Quarterly Data
	Sep19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-	-	-2.28	-	-

Competitive Comparison of Bhatia Communications & Retail (India)'s Beneish M-Score

For the Electronics & Computer Distribution subindustry, Bhatia Communications & Retail (India)'s Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Bhatia Communications & Retail (India)'s Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Bhatia Communications & Retail (India)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Bhatia Communications & Retail (India)'s Beneish M-Score falls into.

Bhatia Communications & Retail (India) Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Bhatia Communications & Retail (India) for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.3746

0.528 * 0.9066

0.404 * 0.986

0.892 * 1.2084

0.115 * 1.0489

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0188

4.679 * -0.062527

0.327 * 0.9639

-2.28

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ₹188 Mil.
Revenue was ₹4,138 Mil.
Gross Profit was ₹377 Mil.
Total Current Assets was ₹861 Mil.
Total Assets was ₹1,207 Mil.
Property, Plant and Equipment(Net PPE) was ₹96 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹13 Mil.
Selling, General, & Admin. Expense(SGA) was ₹13 Mil.
Total Current Liabilities was ₹383 Mil.
Long-Term Debt & Capital Lease Obligation was ₹5 Mil.
Net Income was ₹115 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹191 Mil.

Total Receivables was ₹113 Mil.
Revenue was ₹3,424 Mil.
Gross Profit was ₹283 Mil.
Total Current Assets was ₹673 Mil.
Total Assets was ₹949 Mil.
Property, Plant and Equipment(Net PPE) was ₹78 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹11 Mil.
Selling, General, & Admin. Expense(SGA) was ₹11 Mil.
Total Current Liabilities was ₹311 Mil.
Long-Term Debt & Capital Lease Obligation was ₹6 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(188.28 / 4137.939)	/	(113.343 / 3424.191)
	=	0.045501	/	0.033101
	=	1.3746

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(283.161 / 3424.191)	/	(377.425 / 4137.939)
	=	0.082694	/	0.091211
	=	0.9066

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (861.284 + 96.343) / 1206.815)	/	(1 - (672.673 + 77.827) / 949.307)
	=	0.206484	/	0.209423
	=	0.986

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	4137.939	/	3424.191
	=	1.2084

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(11.165 / (11.165 + 77.827))	/	(13.089 / (13.089 + 96.343))
	=	0.125461	/	0.119609
	=	1.0489

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(13.22 / 4137.939)	/	(10.739 / 3424.191)
	=	0.003195	/	0.003136
	=	1.0188

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((5.431 + 382.53) / 1206.815)	/	((5.545 + 311.073) / 949.307)
	=	0.321475	/	0.333525
	=	0.9639

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(115.175 - 0	-	190.634)	/	1206.815
	=	-0.062527

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Bhatia Communications & Retail (India) has a M-score of -2.28 suggests that the company is unlikely to be a manipulator.

Bhatia Communications & Retail (India) Beneish M-Score Related Terms

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Bhatia Communications & Retail (India) Business Description

Industry

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Traded in Other Exchanges

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Address

Ring Road, 132, Dr. Ambedkar Shopping Centre, Surat, GJ, IND, 395002

Website

https://www.bhatiamobile.com

Bhatia Communications & Retail (India) Ltd is the distributor of mobile handsets and accessories. The firm is engaged in the retail and wholesale distribution of mobile handsets, tablets, data cards and mobile accessories through retail and franchised stores. It is a growth-oriented company selling multi-product brands that also operates under stores and sells electronic appliances such as television, refrigerators, air conditioners, coolers, washing machines, and microwaves. Bhatia Communications markets and sells its product under the brands: Apple iPhone, Samsung, OPPO, VIVO, etc. Substantial revenue accrues from owned retail stores. It also offers technical expertise and guide to customers to buy the right product as per their needs.

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