5paisa Capital Limited

Financial Services — Capital Markets · NSE

₹346.10+₹0.50 (+0.14%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of 5paisa Capital Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

5paisa Capital Limited provides an online technology platform for trading in National Stock Exchange of India Limited, BSE Ltd, and MCX in India.

IndustryCapital Markets

SectorFinancial Services

Employees609

Annual revenue₹181 Cr

How does it make money?

Turns over ₹181 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹58 left at the operating level before interest, tax and depreciation. Each of its 609 employees supports ₹29.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin57.9%

Net margin24.4%

Revenue / employee₹29.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE11.8%

ROE4.7%

Peer median ROE13.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -23% while net margin moved +32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-23%

Margin effect+32%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.5% a year
✗ Profit CAGR of only 0.5%
✗ Profit fell 49.2% in the latest year

Quality vs. Valuation

Company Quality

56/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

30.2x

3Y Median

24.7x

40 monthly readings · mean 25.5x · range 11.4x–42.0x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 22% above its 3y median of 24.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 48% below the peer median of 58.4x.

vs. its own history

Expensive

24.7x median over 40 months · +22%

vs. sector peers

Cheap

58.4x median of 3 peers · -48%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

30.2x

P/B

1.39x

EV/EBITDA

18.0x

PEG

64.22

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 37.9% to 57.9% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on capital is falling
ROCE has declined from 16.0% to 11.8% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 149% against revenue growth of -23% — customers are taking longer to pay.
Valuation above its historical average
At 30.2x the stock trades 22% above its own median of 24.7x.

Red Flags

1 item require attention · 1 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.0x to 3.2x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 37.9% to 57.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 48% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 22% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 56%✓ 57.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 4.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.
4Valuation vs its own median of 24.7x✗ 30.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹1,622 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.2x

Fair

Fairly valued against the generic band

P/B Ratio

1.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹11.47

Profitable

Profitable on a per-share basis

ROE

4.7%

Weak

Weak capital efficiency

ROCE

11.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

11.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-49.2%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹111 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹346.1

P/E (Forward)

22.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

2.1%

Weak

Assets generate little profit

Operating Margin

12.3%

Average

Average margins

Net Margin

13.5%

Good

Strong bottom-line conversion

Current Ratio

5.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

329.3 / 348.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

68.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹236 Cr	₹259 Cr	₹229 Cr	₹181 Cr	-8.5%
EBITDA	₹89 Cr	₹106 Cr	₹127 Cr	₹105 Cr	+5.4%
EBITDA Margin	37.9%	40.8%	55.2%	57.9%	—
PAT (Net Profit)	₹44 Cr	₹54 Cr	₹68 Cr	₹44 Cr	+0.5%
EPS	₹14.33	₹16.67	₹21.79	₹14.13	-0.5%
ROE	9.4%	10.1%	11.3%	6.8%	—
ROCE	16.0%	17.5%	18.1%	11.8%	—
Total Debt	₹169 Cr	₹336 Cr	₹217 Cr	₹304 Cr	+21.6%
Free Cash Flow	₹11 Cr	-₹111 Cr	₹90 Cr	-₹111 Cr	—

🔴 Revenue has shrunk at 8.5% a year over 3 years.

🟢 EBITDA has grown at 5.4% a year over 3 years.

🟢 EBITDA Margin has risen from 37.9% to 57.9% over 3 years (+20.0 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.5% a year).

🟡 EPS has been broadly flat over 3 years (-0.5% a year).

🔴 ROE has fallen from 9.4% to 6.8% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 16.0% to 11.8% over 3 years (-4.2 pts).

🔴 Total Debt has grown at 21.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹11 Cr to -₹111 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,907 Cr

Total Liabilities

₹1,258 Cr

Total Debt

₹304 Cr

Cash & Equivalents

₹37 Cr

Operating Cash Flow

-₹104 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

12.4%

Insider Holding

71.4%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 positive1 mixed1 negative3 general

Momentum Stocks: Manali Petro, 5paisa Capital, Cybertech rises up tp 10% on sheer momentum

Moneycontrol.com, 05 Oct

5Paisa Capital Share Price and Chart Analysis

Kalkine India, 05 Oct

5paisa Capital Q2FY27 Results: Net profit falls 26% YoY to ₹7.1 crore

scanx.trade, 17 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

5Paisa Capital - Dividend, bonus issue alert: Midhani among 7 stocks turning ex-date for corporate actions this week

The Economic Times, 15 MarCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

5Paisa Capital Share Price Target 2026 Bull Bear Case Analysis

Univest, 13 MayAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

5paisa Capital Limited's (NSE:5PAISA) market cap increased by ₹1.4b, insiders receive a 33% cut

Simply Wall Street, 20 Nov

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate12.2/20

🟢Financial HealthStrong17/20

🔴GrowthWeak4.8/20

🟡ProfitabilityModerate7.9/15

🟡ValuationFair7.5/15

🔴RiskHigh4.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 56%57.9%
✗Return on equity stays above 8%4.7%
✓Interest cover stays above 3x3.2x
✗Valuation vs its own median of 24.7x30.2x today