Abans Financial Services Limited

Financial Services — Capital Markets · NSE

₹201.95+₹0.95 (+0.47%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, 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, 6:52 pm

Understanding the Business

Company site ↗

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

What does this company do?

Abans Financial Services Limited, together with its subsidiaries, operates as a non-banking finance company in India and internationally. It operates through Fee Based Investment Services, Principal Investment & Treasury, Lending & Credit Solutions, and Others segments.

IndustryCapital Markets

SectorFinancial Services

Employees177

Annual revenue₹23,874 Cr

How does it make money?

Turns over ₹23,874 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 177 employees supports ₹134.88 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹134.88 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.

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 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 +2012% while net margin moved -93% 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+2012%

Margin effect-93%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 8.4% is weak

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

84/ 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

7.6x

3Y Median

11.8x

40 monthly readings · mean 15.9x · range 9.4x–38.3x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 35% below its 3y median of 11.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 87% below the peer median of 58.4x.

vs. its own history

Cheap

11.8x median over 40 months · -35%

vs. sector peers

Cheap

58.4x median of 3 peers · -87%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.0x

PEG

0.53

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 7.8% to 11.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.4 points, from 7.1% to 0.7%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 35% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 87% 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?

Margins are being competed away
EBITDA margin has fallen from 7.1% to 0.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 132% a year✓ 176.4% CAGR
Latest reported year was 95.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 0.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 8.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 4x✓ 4.0x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 11.8x✓ 7.6x 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

7 good · 4 neutral · 0 weak

Market Cap

₹1,034 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.6x

Cheap

Cheap against the generic band

P/B Ratio

0.82x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹26.52

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

11.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.56x

Low

Conservative leverage

Revenue Growth (YoY)

95.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

88.9%

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

₹502 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.7%

Weak

Thin margins leave little room for error

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.06

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

201.3 / 203.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

62.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,130 Cr	₹1,337 Cr	₹3,265 Cr	₹23,874 Cr	+176.4%
EBITDA	₹80 Cr	₹138 Cr	₹198 Cr	₹163 Cr	+26.8%
EBITDA Margin	7.1%	10.3%	6.1%	0.7%	—
PAT (Net Profit)	₹70 Cr	₹89 Cr	₹109 Cr	₹105 Cr	+14.4%
EPS	₹14.84	₹17.74	₹21.44	₹20.78	+11.9%
ROE	8.5%	9.6%	10.1%	8.4%	—
ROCE	7.8%	11.3%	16.2%	11.1%	—
Total Debt	₹441 Cr	₹929 Cr	₹834 Cr	₹754 Cr	+19.5%
Free Cash Flow	₹211 Cr	₹33 Cr	-₹121 Cr	₹502 Cr	+33.5%

🟢 Revenue has grown at 176.4% a year over 3 years.

🟢 EBITDA has grown at 26.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.1% to 0.7% over 3 years (-6.4 pts).

🟢 PAT (Net Profit) has grown at 14.4% a year over 3 years.

🟢 EPS has grown at 11.9% a year over 3 years.

🟡 ROE has held roughly flat at 8.4% over 3 years.

🟢 ROCE has risen from 7.8% to 11.1% over 3 years (+3.4 pts).

🔴 Total Debt has grown at 19.5% a year over 3 years.

🟢 Free Cash Flow has grown at 33.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,907 Cr

Total Liabilities

₹1,555 Cr

Cash & Equivalents

₹333 Cr

Operating Cash Flow

₹505 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

6.8%

Insider Holding

82.1%

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

1 mixed5 general

Abans Financial Services Ltd. Share Price Live Today

CNBC TV18, 16 Oct

Abans Financial Services (NSEI:AFSL) - Stock Analysis

Simply Wall Street, 09 Oct

Abans Financial Services buys 6.01% stake in Abans Finance for ₹111/share

scanx.trade, 07 Oct

Abans Financial Services Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Abans Investment Managers Limited

UnlistedZone, 30 Jul

Abans Financial Services Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 21 Sept

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.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Risk

WeakProfitability

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

All 5 tripwires holding · see Key things to watch ↑