Advik Capital Limited

Financial Services — Credit Services · NSE

₹0.97₹0.00 (0.00%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Advik Capital Limited, a non-banking financial company, together with its subsidiaries, engages in financial activities in India. It operates through three segments: Financing, Trading in Securities, and Manufacturing.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹-673 reaches shareholders as profit, with ₹-856 left at the operating level before interest, tax and depreciation.

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%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -99% while net margin moved -43614% 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-99%

Margin effect-43614%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 82.4% a year
✗ Profit fell 368.1% in the latest year

Quality vs. Valuation

Company Quality

37/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.0% to -15.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.7% to -19.9% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -38.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹22 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 857.7 points, from 2.2% to -855.6%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 18.8x to -38.2x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 153% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 2.2% to -855.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 16.0% to -15.4%. 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -858%✓ -855.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ -20.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ -38.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 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

1 good · 2 neutral · 8 weak

Market Cap

₹59 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.45x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.51

Loss-making

Negative earnings per share — the business is losing money

ROE

-20.1%

Weak

Weak capital efficiency

ROCE

-19.9%

Weak

Low return on total capital employed

Debt/Equity

1.95x

High

High leverage

Revenue Growth (YoY)

-66.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-368.1%

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

-₹101 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

-2.9%

Weak

Assets generate little profit

Operating Margin

-15.5%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

55.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.55

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹604 Cr	₹22 Cr	₹30 Cr	₹3 Cr	-82.4%
EBITDA	₹13 Cr	₹10 Cr	₹12 Cr	-₹28 Cr	—
EBITDA Margin	2.2%	46.3%	40.4%	-855.6%	—
PAT (Net Profit)	₹9 Cr	₹6 Cr	₹8 Cr	-₹22 Cr	—
EPS	₹0.38	₹0.2	₹0.16	₹-0.36	—
ROE	16.0%	5.6%	5.0%	-15.4%	—
ROCE	11.7%	5.3%	6.8%	-19.9%	—
Total Debt	₹75 Cr	₹79 Cr	₹153 Cr	₹144 Cr	+24.2%
Free Cash Flow	-₹88 Cr	-₹54 Cr	-₹116 Cr	₹36 Cr	—

🔴 Revenue has shrunk at 82.4% a year over 3 years.

🔴 EBITDA has turned negative, from ₹13 Cr to -₹28 Cr.

🔴 EBITDA Margin has fallen from 2.2% to -855.6% over 3 years (-857.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹9 Cr to -₹22 Cr.

🔴 EPS has turned negative, from ₹0.38 to ₹-0.36.

🔴 ROE has fallen from 16.0% to -15.4% over 3 years (-31.4 pts).

🔴 ROCE has fallen from 11.7% to -19.9% over 3 years (-31.7 pts).

🔴 Total Debt has grown at 24.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹88 Cr to ₹36 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹303 Cr

Total Liabilities

₹160 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹36 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

46.8%

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

1 negative5 general

Advik Capital Q2FY27 Results: Net loss widens to ₹693 lakh, revenue down 66%

scanx.trade, 15 OctResults

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

Advik Capital Ltd

Equitypandit, 24 Sept

ADVIKCA Stock Price and Chart — NSE:ADVIKCA

TradingView, 17 Aug

Advik Capital Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 26 Aug

Compare BOM.OXYGEN with

Equitymaster, 09 Oct

Fairplan Distributors Acquires 23.46% Stake in Advik Capital Through Open Market Purchases

scanx.trade, 08 Apr

Watch Items

Revenue growth is negative (-66.0%) 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.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 3 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑