Abhishek Finlease Limited

Financial Services — Asset Management · BSE

₹58.40−₹1.98 (−3.28%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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, 6:09 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 Abhishek Finlease Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Abhishek Finlease Limited operates as a non-deposit taking core investment company in India. The company offers investment consultancy for long-term and short-term finance investments. It also engages in the sale of shares and securities; and short-term finance activities.

IndustryAsset Management

SectorFinancial Services

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation.

EBITDA margin14.7%

Net margin9.5%

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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 BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

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

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.

ROCE1.5%

ROE1.0%

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 +53% while net margin moved -53% 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+53%

Margin effect-53%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 417.1x is demanding — it needs sustained high growth to justify
✗ P/E is 125% above its own historical median of 185.0x — expensive by its own standards
✗ P/B of 5.16x is a steep premium to book

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

23/ 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

417.1x

3Y Median

185.0x

40 monthly readings · mean 211.9x · range 85.0x–558.5x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 125% above its 3y median of 185.0x. 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 2355% above the peer median of 17.0x.

vs. its own history

Expensive

185.0x median over 40 months · +125%

vs. sector peers

Expensive

17.0x median of 4 peers · +2355%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

417.1x

P/B

5.16x

EV/EBITDA

282.7x

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

Margins are compressing
EBITDA margin has slipped from 27.2% to 14.7% over 3 years.
Valuation above its historical average
At 417.1x the stock trades 125% above its own median of 185.0x.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.5 points, from 27.2% to 14.7%.
🟡Profit is decliningFinancial
Net profit is down 28% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 27.2% to 14.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 125% 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

1Revenue growth stays above 11% a year✓ 15.3% CAGR
Latest reported year was 14.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 1.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 185.0x✗ 417.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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 · 2 neutral · 5 weak

Market Cap

₹27 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

417.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.16x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.14

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

1.5%

Weak

Low return on total capital employed

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

14.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

75.0%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹58.4

Operating Margin

30.1%

Good

Healthy core-business profitability

Net Margin

10.4%

Good

Strong bottom-line conversion

Current Ratio

23.39

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.05

Defensive

Steadier than the market

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

68.4 / 64.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

24.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+15.3%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-6.1%
EBITDA Margin	27.2%	21.6%	20.3%	14.7%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-10.4%
EPS	₹0.2	₹0.4	₹0.19	₹0.13	-13.4%
ROE	2.0%	3.8%	1.5%	1.0%	—
ROCE	—	5.1%	2.4%	1.5%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-49.5%
Free Cash Flow	₹0 Cr	₹0 Cr	-₹1 Cr	-₹0 Cr	—

🟢 Revenue has grown at 15.3% a year over 3 years.

🔴 EBITDA has shrunk at 6.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 27.2% to 14.7% over 3 years (-12.5 pts).

🔴 PAT (Net Profit) has shrunk at 10.4% a year over 3 years.

🔴 EPS has shrunk at 13.4% a year over 3 years.

🔴 ROE has fallen from 2.0% to 1.0% over 3 years (-1.0 pts).

🔴 ROCE has fallen from 5.1% to 1.5% over 3 years (-3.7 pts).

🟢 Total Debt has shrunk at 49.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6 Cr

Total Liabilities

₹0 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.2%

Peer Comparison

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

Recent News

6 general

Abhishek Finlease Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Abhishek Finlease sets September 30 for 31st AGM

scanx.trade, 30 Sept

Abhishek Finlease Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

Abhishek Finlease AGM resolutions pass with 100% votes in favor

scanx.trade, 30 Sept

Price Performance

Yahoo! Finance Canada, 08 Oct

Abhishek Finlease Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

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 oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate12.7/20

🟢Financial HealthStrong17/20

🟡GrowthModest9.3/20

🟡ProfitabilityModerate7.9/15

🔴ValuationDemanding3.3/15

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

This thesis breaks if

✓Revenue growth stays above 11% a year15.3% CAGR
✓EBITDA margin holds above 13%14.7%
✗Return on equity stays above 8%1.0%
✗Valuation vs its own median of 185.0x417.1x today