A. K. Capital Services Limited

Financial Services — Capital Markets · NSE

₹1,754.00−₹6.90 (−0.39%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

A. K. Capital Services Limited provides merchant banking services in India.

IndustryCapital Markets

SectorFinancial Services

Employees86

Annual revenue₹528 Cr

How does it make money?

Turns over ₹528 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹76 left at the operating level before interest, tax and depreciation. Each of its 86 employees supports ₹6.14 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.14 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 +35% while net margin moved -7% 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+35%

Margin effect-7%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 10.6% is steady
✗ Profit CAGR of only 8.0%
✗ Latest-year revenue growth of 3.9% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

78/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.1x

Sector Median

58.4x

median of 3 sector peers

🟢Against its sector it trades 83% below the peer median of 58.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

58.4x median of 3 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.4x

PEG

1.27

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 66.1% to 75.8% over 3 years.
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

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 66.1% to 75.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 83% 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?

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 8% a year✓ 10.6% CAGR
Latest reported year was 3.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 74%✓ 75.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 10.5%
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.

Investment Checklist

6 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹1,158 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.1x

Cheap

Cheap against the generic band

P/B Ratio

1.11x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹173.4

Profitable

Profitable on a per-share basis

ROE

10.5%

Moderate

Moderate capital efficiency

ROCE

9.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.73x

High

High leverage

Revenue Growth (YoY)

3.9%

Modest

Modest growth

Profit Growth (YoY)

17.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.94%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹263 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

71.4%

Good

Healthy core-business profitability

Net Margin

19.8%

Good

Strong bottom-line conversion

Current Ratio

140.94

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.00

Defensive

Steadier than the market

52W Range Position

70%

Mid-range

Technical Snapshot

RSI (14)

50.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹391 Cr	₹498 Cr	₹417 Cr	₹528 Cr	+10.6%
EBITDA	₹258 Cr	₹328 Cr	₹344 Cr	₹401 Cr	+15.8%
EBITDA Margin	66.1%	65.8%	82.4%	75.8%	—
PAT (Net Profit)	₹88 Cr	₹92 Cr	₹85 Cr	₹110 Cr	+8.0%
EPS	₹132.78	₹138.95	₹128.38	₹167.2	+8.0%
ROE	10.4%	10.0%	8.7%	10.5%	—
ROCE	8.3%	22.0%	17.5%	9.1%	—
Total Debt	₹2,177 Cr	₹2,752 Cr	₹3,147 Cr	₹3,088 Cr	+12.4%
Free Cash Flow	₹38 Cr	₹192 Cr	-₹264 Cr	-₹263 Cr	—

🟢 Revenue has grown at 10.6% a year over 3 years.

🟢 EBITDA has grown at 15.8% a year over 3 years.

🟢 EBITDA Margin has risen from 66.1% to 75.8% over 3 years (+9.7 pts).

🟢 PAT (Net Profit) has grown at 8.0% a year over 3 years.

🟢 EPS has grown at 8.0% a year over 3 years.

🟡 ROE has held roughly flat at 10.5% over 3 years.

🟡 ROCE has held roughly flat at 9.1% over 3 years.

🔴 Total Debt has grown at 12.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹38 Cr to -₹263 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,284 Cr

Total Liabilities

₹3,152 Cr

Cash & Equivalents

₹62 Cr

Operating Cash Flow

-₹258 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.2%

Corporate Actions

Dividend Rate

₹34

Ex-Dividend Date

01 Sept 2026

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

A.K. Capital Services certifies timely payment of ₹5 crore commercial paper

scanx.trade, 15 Oct

A.K.Capital Services Ltd is Rated Hold

MarketsMojo, 16 Oct

AK Capital Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

AK Capital Services Ltd. Share Price Live Today

CNBC TV18, 03 Jan

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

Value Research, 31 Aug

India’s bond market remains too small; savings must move beyond gold and real estate: AK Mittal of...

Moneycontrol.com, 26 May

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

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 4 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑