ABans Enterprises Limited

Financial Services — Capital Markets · NSE

₹36.15+₹1.63 (+4.72%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

ABans Enterprises Limited, together with its subsidiaries, engages in the trading of precious metal, agricultural and non-agricultural commodities in India, the United Arab Emirates, and Mauritius.

IndustryCapital Markets

SectorFinancial Services

Employees104

Annual revenue₹13,803 Cr

How does it make money?

Turns over ₹13,803 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 104 employees supports ₹132.72 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin0.2%

Net margin0.0%

Revenue / employee₹132.72 Cr

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.

ROCE8.2%

ROE1.8%

Peer median ROE13.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +637% while net margin moved -97% 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+637%

Margin effect-97%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.42 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

80/ 100

Cheap

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

8.3x

Sector Median

58.4x

median of 3 sector peers

🟢Against its sector it trades 86% below the peer median of 58.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

58.4x median of 3 peers · -86%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

8.3x

P/B

1.16x

EV/EBITDA

11.7x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 9.5% to 1.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.1% to 8.2% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.8x to 1.7x.
🟡Profit is decliningFinancial
Net profit is down 76% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 86% 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?

Returns on shareholder capital are falling
ROE has dropped from 9.5% to 1.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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

1Revenue growth stays above 71% a year✓ 94.6% CAGR
Latest reported year was 39.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 1.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹252 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.3x

Cheap

Cheap against the generic band

P/B Ratio

1.16x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.37

Profitable

Profitable on a per-share basis

ROE

1.8%

Weak

Weak capital efficiency

ROCE

8.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.75x

Moderate

Moderate leverage

Revenue Growth (YoY)

39.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

600.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹158 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹36.15

Operating Margin

3.2%

Weak

Thin margins leave little room for error

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.42

High swing

Swings more than the market in both directions

52W Range Position

83%

Mid-range

Technical Snapshot

RSI (14)

79.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,874 Cr	₹1,774 Cr	₹3,827 Cr	₹13,803 Cr	+94.6%
EBITDA	₹24 Cr	₹34 Cr	₹52 Cr	₹34 Cr	+11.5%
EBITDA Margin	1.3%	1.9%	1.3%	0.2%	—
PAT (Net Profit)	₹17 Cr	₹9 Cr	₹19 Cr	₹4 Cr	-38.1%
EPS	₹2.39	₹1.4	₹2.7	₹0.57	-38.0%
ROE	9.5%	5.0%	9.1%	1.8%	—
ROCE	12.1%	15.2%	20.4%	8.2%	—
Total Debt	₹90 Cr	₹155 Cr	₹255 Cr	₹161 Cr	+21.3%
Free Cash Flow	-₹25 Cr	₹57 Cr	-₹199 Cr	₹158 Cr	—

🟢 Revenue has grown at 94.6% a year over 3 years.

🟢 EBITDA has grown at 11.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 1.3% to 0.2% over 3 years (-1.1 pts).

🔴 PAT (Net Profit) has shrunk at 38.1% a year over 3 years.

🔴 EPS has shrunk at 38.0% a year over 3 years.

🔴 ROE has fallen from 9.5% to 1.8% over 3 years (-7.7 pts).

🔴 ROCE has fallen from 12.1% to 8.2% over 3 years (-3.9 pts).

🔴 Total Debt has grown at 21.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹25 Cr to ₹158 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹392 Cr

Total Liabilities

₹175 Cr

Total Debt

₹161 Cr

Cash & Equivalents

₹18 Cr

Operating Cash Flow

₹161 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

7.0%

Insider Holding

88.2%

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

2 mixed4 general

ABans Enterprises Ltd. Share Price Rise Streak and valuation

Univest, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

ABans Enterprises Upper Circuit Streak: Day 2 Price and Data

Univest, 13 Oct

ABans Enterprises Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Compare PHOTOQUIP(I) with

Equitymaster, 27 Sept

ABans Enterprises Share Price: Price Action and Valuation

Univest, 12 Oct

ABans Enterprises reports standalone net loss of Rs 0.56 crore in the June 2026 quarter

Business Standard, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak6.5/20

🟢Financial HealthStrong17/20

🔴GrowthWeak8.9/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive13/15

🔴RiskHigh2.6/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 71% a year94.6% CAGR
✓EBITDA margin holds above -2%0.2%
✗Return on equity stays above 8%1.8%
✗Interest cover stays above 3x1.7x