Ajcon Global Services Limited

Financial Services — Capital Markets · BSE

₹5.99₹0.00 (0.00%)

DalalBaazaar Score

49 / 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 modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ajcon Global Services Limited, together with its subsidiaries, provides financial services in India.

IndustryCapital Markets

SectorFinancial Services

Employees37

Annual revenue₹35 Cr

How does it make money?

Turns over ₹35 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 37 employees supports ₹94.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹94.8 lakh

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 +344% while net margin moved -91% 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+344%

Margin effect-91%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.9% is weak

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

29/ 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

199.7x

3Y Median

44.2x

40 monthly readings · mean 67.7x · range 22.2x–202.7x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 352% above its 3y median of 44.2x. 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 242% above the peer median of 58.4x.

vs. its own history

Expensive

44.2x median over 40 months · +352%

vs. sector peers

Expensive

58.4x median of 3 peers · +242%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

37.1x

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 Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 22.4 points, from 26.0% to 3.5%.
🟡Profit is decliningFinancial
Net profit is down 60% 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 26.0% to 3.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 352% 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.
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
2 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

1Revenue growth stays above 48% a year✓ 64.3% CAGR
Latest reported year was 13.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 3.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 0.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 44.2x✗ 199.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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 · 3 neutral · 4 weak

Market Cap

₹37 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

199.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.03

Profitable

Profitable on a per-share basis

ROE

0.9%

Weak

Weak capital efficiency

ROCE

2.9%

Weak

Low return on total capital employed

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

13.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.6%

Average

Average margins

Net Margin

0.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

7.15

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.40

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.9 / 6.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	₹12 Cr	₹15 Cr	₹35 Cr	+64.3%
EBITDA	₹2 Cr	-₹0 Cr	₹1 Cr	₹1 Cr	-15.5%
EBITDA Margin	26.0%	-0.8%	6.5%	3.5%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-26.5%
EPS	₹0.09	₹0.21	₹0.08	₹0.03	-31.6%
ROE	2.6%	5.5%	2.2%	0.9%	—
ROCE	4.6%	6.8%	4.1%	2.9%	—
Total Debt	₹12 Cr	₹11 Cr	₹9 Cr	₹10 Cr	-6.5%
Free Cash Flow	-₹1 Cr	-₹0 Cr	-₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 64.3% a year over 3 years.

🔴 EBITDA has shrunk at 15.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 26.0% to 3.5% over 3 years (-22.4 pts).

🔴 PAT (Net Profit) has shrunk at 26.5% a year over 3 years.

🔴 EPS has shrunk at 31.6% a year over 3 years.

🔴 ROE has fallen from 2.6% to 0.9% over 3 years (-1.7 pts).

🔴 ROCE has fallen from 4.6% to 2.9% over 3 years (-1.7 pts).

🟢 Total Debt has shrunk at 6.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹41 Cr

Total Liabilities

₹14 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.0%

Corporate Actions

Ex-Dividend Date

06 Feb 2008

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

6 general

Ajcon Global Services Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Ajcon Global Services (BSE: AJCON): What Investors Should Know

Kalkine India, 10 Sept

Ajcon Global Services Opens Special Window for Physical Share Transfer and Dematerialisation

scanx.trade, 05 Feb

Ajcon Global Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

MANTRA Stock Price and Chart — BSE:MANTRA

TradingView, 09 Feb

Ajcon Global Services Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 02 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

WeakBusiness Quality · Growth · Profitability · Valuation · 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 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x; Valuation vs its own median of 44.2x · see Key things to watch ↑