Bhagwan Marine (ASX:BWN) offers clear value with steady fiscal first-half performance, strong cash generation, and improving margins, according to a Thursday Euroz Hartleys note.

The company's trading update ahead of results shows earnings before interest, taxes, depreciation, and amortization (EBITDA) of AU$21.8 million to AU$22.8 million in line with prior periods and strong free cash generation of about AU$9 million.

The research firm noted that the company delivered a solid fiscal H1 with margin gains and strong cash flow, although the timing of larger projects may cause revenue variability in the fiscal second half, leading to a revised full-year EBITDA of AU$51.9 million, down from AU$54.9 million.

The firm sees the company as offering genuine value at current levels, with strong underlying demand and an expected stronger second half driven by margin improvements and an increased pace of larger projects.

Euroz Hartleys maintained Bhagwan Marine's buy rating and its AU$0.77. per share price target.