Abirami Financial Services (India) Limited

Financial Services — Credit Services · BSE

₹33.33₹0.00 (0.00%)

DalalBaazaar Score

52 / 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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Abirami Financial Services (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Abirami Financial Services (India) Limited engages in the hire purchase business. It is also involved in leasing and lending money against securities, movable and immovable properties. The company was incorporated in 1993 and is based in Chennai, India.

IndustryCredit Services

SectorFinancial Services

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.

Compared side by side in Peers ↓

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.

Peer median ROE16.5%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Profit has declined at 67.3% a year
✗ Profit fell 21.7% in the latest year

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

45/ 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

37.0x

3Y Median

23.0x

40 monthly readings · mean 24.9x · range 8.9x–47.6x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 61% above its 3y median of 23.0x. 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 118% above the peer median of 17.0x.

vs. its own history

Expensive

23.0x median over 40 months · +61%

vs. sector peers

Expensive

17.0x median of 4 peers · +118%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

-0.5x

PEG

—

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 65.3% to 2.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 83.2% to 3.4% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 96% 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?

The price already assumes success
The stock trades 61% 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 65.3% to 2.6%. 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.
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

1Return on equity stays above 8%✗ 2.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Valuation vs its own median of 23.0x✗ 37.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.92x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.9

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

3.4%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-10.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-21.7%

Falling

Profits are shrinking

Dividend Yield

4.50%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

2.4%

Weak

Assets generate little profit

Operating Margin

46.4%

Good

Healthy core-business profitability

Net Margin

37.6%

Good

Strong bottom-line conversion

Current Ratio

36.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

32.9 / 33.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹19 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-66.9%
PAT (Net Profit)	₹15 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-67.3%
EPS	₹2.43	₹2.69	₹1.07	₹0.95	-26.9%
ROE	65.3%	7.0%	2.9%	2.6%	—
ROCE	83.2%	5.3%	4.1%	3.4%	—
Free Cash Flow	-₹6 Cr	-₹0 Cr	-₹1 Cr	-₹0 Cr	—

🔴 EBITDA has shrunk at 66.9% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 67.3% a year over 3 years.

🔴 EPS has shrunk at 26.9% a year over 3 years.

🔴 ROE has fallen from 65.3% to 2.6% over 3 years (-62.7 pts).

🔴 ROCE has fallen from 83.2% to 3.4% over 3 years (-79.8 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹18 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

91.8%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

11 Sept 2026

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

2 positive4 general

Abirami Financial Services (India) Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 03 Sept

Abirami Financial shares FY26 annual report link, sets Sept 18 AGM

scanx.trade, 02 Sept

Birlasoft consolidated net profit rises 51.27% in the June 2026 quarter

Business Standard, 28 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Dividend stocks alert! Last day to qualify for dividend of these stocks - Check full list, amount, record date

Livemint, 10 SeptCapital return

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

Waaree Energies, Venkys, Amrutanjan, Uttam Sugar, Rupa Dividends: Last Day To Buy Shares To Qualify

NDTV Profit, 10 Sept

Abirami Financial regularises Santhosh Veerappan as Independent Director

scanx.trade, 09 Jun

Watch Items

Revenue growth is negative (-10.4%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Valuation

WeakGrowth · Risk

Points for each in the Score ↑

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.

2 of 2 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 23.0x · see Key things to watch ↑