Abhinav Capital Services Limited

Financial Services — Credit Services · BSE

₹165.00+₹5.00 (+3.13%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Abhinav Capital Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Abhinav Capital Services Limited operates as a non-banking finance company. It engages in the lending and financing business in India. The company was formerly known as Abhinav Homes & Resorts Limited and changed its name to Abhinav Capital Services Limited in 2006.

IndustryCredit Services

SectorFinancial Services

Employees7

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹63 reaches shareholders as profit, with ₹77 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹58.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin76.6%

Net margin63.2%

Revenue / employee₹58.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK 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%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

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.

ROCE4.4%

ROE3.5%

Peer median ROE16.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +67% while net margin moved -84% 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+67%

Margin effect-84%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.01 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

35/ 100

Expensive

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

41.1x

3Y Median

13.6x

40 monthly readings · mean 31.3x · range 8.4x–86.6x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 203% above its 3y median of 13.6x. 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 142% above the peer median of 17.0x.

vs. its own history

Expensive

13.6x median over 40 months · +203%

vs. sector peers

Expensive

17.0x median of 4 peers · +142%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

41.1x

P/B

1.39x

EV/EBITDA

36.4x

PEG

1.05

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 66.1% to 76.6% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 16.0% to 3.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.1% to 4.4% — often a sign of competition or overexpansion.
Valuation above its historical average
At 41.1x the stock trades 203% above its own median of 13.6x.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 73% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 66.1% to 76.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 203% 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.
Returns on shareholder capital are falling
ROE has dropped from 16.0% to 3.5%. 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 14% a year✓ 18.8% CAGR
Latest reported year was 11.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 75%✓ 76.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 3.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 13.6x✗ 41.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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
✓ 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 · 3 neutral · 4 weak

Market Cap

₹114 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

41.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.01

Profitable

Profitable on a per-share basis

ROE

3.5%

Weak

Weak capital efficiency

ROCE

4.4%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

11.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

39.1%

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

-₹38 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹165

ROA

2.5%

Weak

Assets generate little profit

Operating Margin

82.3%

Good

Healthy core-business profitability

Net Margin

63.0%

Good

Strong bottom-line conversion

Current Ratio

1556.28

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.01

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

142.3 / 120.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

76.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹5 Cr	₹5 Cr	₹4 Cr	+18.8%
EBITDA	₹2 Cr	₹0 Cr	₹2 Cr	₹3 Cr	+24.8%
EBITDA Margin	66.1%	9.3%	31.3%	76.6%	—
PAT (Net Profit)	₹10 Cr	₹9 Cr	₹1 Cr	₹3 Cr	-35.6%
EPS	₹13.98	₹13.37	₹1.74	₹3.74	-35.6%
ROE	16.0%	12.0%	1.5%	3.5%	—
ROCE	20.1%	14.1%	2.6%	4.4%	—
Total Debt	₹0 Cr	₹38 Cr	—	—	—
Free Cash Flow	₹9 Cr	₹35 Cr	-₹22 Cr	-₹38 Cr	—

🟢 Revenue has grown at 18.8% a year over 3 years.

🟢 EBITDA has grown at 24.8% a year over 3 years.

🟢 EBITDA Margin has risen from 66.1% to 76.6% over 3 years (+10.5 pts).

🔴 PAT (Net Profit) has shrunk at 35.6% a year over 3 years.

🔴 EPS has shrunk at 35.6% a year over 3 years.

🔴 ROE has fallen from 16.0% to 3.5% over 3 years (-12.5 pts).

🔴 ROCE has fallen from 20.1% to 4.4% over 3 years (-15.8 pts).

🔴 Free Cash Flow has turned negative, from ₹9 Cr to -₹38 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹78 Cr

Total Liabilities

₹5 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹38 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

91.4%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

6 general

Abhinav Capital Services Lower Circuit Today: Price, Data and Peers

Univest, 16 Oct

Abhinav Capital Services (ABHICAP) Share Price near 52-week high on 07 October 2026

Univest, 07 Oct

Abhinav Capital Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Financial Services Stocks Today: Live Prices

Alice Blue, 16 Oct

Abhinav Capital Services Ltd is Rated Sell

MarketsMojo, 06 Oct

Abhinav Capital adopts FY26 accounts, reappoints Chetan Karia

scanx.trade, 30 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🟢Financial HealthStrong17/20

🔴GrowthWeak8.9/20

🟡ProfitabilityModerate7.5/15

🔴ValuationDemanding6.2/15

🔴RiskHigh4.1/10

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

✓Revenue growth stays above 14% a year18.8% CAGR
✓EBITDA margin holds above 75%76.6%
✗Return on equity stays above 8%3.5%
✗Valuation vs its own median of 13.6x41.1x today