The 60-second version of Arihant's Securities Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
Arihant's Securities Limited, a non-banking financial company, engages in the investment activities in India. The company offers various financial services, including loans, trading, and investing in financial securities, as well as other financial solutions.
IndustryCapital Markets
SectorFinancial Services
Employees9
Annual revenue₹0 Cr
How does it make money?
Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹108 reaches shareholders as profit, with ₹146 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹2.4 lakh of revenue a year, the signature of a people-led business.
Revenue / employee₹2.4 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.
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?
Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -85% while net margin moved +183% 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-85%
Margin effect+183%
DalalBaazaar Score
55/ 100
Moderate
Weighted across six categories. Every point is explained below.
✗ Revenue has contracted at 47.4% a year
✗ Profit has declined at 25.6% a year
✗ Profit fell 52.4% in the latest year
Quality vs. Valuation
Company Quality
59/ 100
Average
How good the business is, ignoring the share price entirely.
vs
Valuation
30/ 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.
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
30.8x
PEG
—
What's Good / What's Bad
🟢 What's Going Well2
Margins are improving
EBITDA margin is up from 51.0% to 145.8% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.
🔴 What Needs Attention1
Return on capital is falling
ROCE has declined from 3.4% to 0.8% — often a sign of competition or overexpansion.
Red Flags
1 item require attention · 1 watch
🟡Profit is decliningFinancial
Net profit is down 59% over 3 years.
Investment Thesis
🟢 Bull CaseWhat could make this work?
Margin expansion has further to run
EBITDA margin has risen from 51.0% to 145.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?
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.
🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today
1EBITDA margin holds above 144%✓ 145.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
Investment Checklist
5 / 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
1 good · 3 neutral · 7 weak
Market Cap
₹10 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
0.27x
Reasonable
Reasonable against the company's book value
EPS (TTM)
₹-0.49
Loss-making
Negative earnings per share — the business is losing money
ROE
0.6%
Weak
Weak capital efficiency
ROCE
0.8%
Weak
Low return on total capital employed
Debt/Equity
Not available
No data
Source didn't return this field
Revenue Growth (YoY)
-5.1%
Shrinking
Sales are contracting
Profit Growth (YoY)
-52.4%
Falling
Profits are shrinking
Dividend Yield
None
None
No dividend yield reported — usually means no payout, but verify if one was recently initiated
Free Cash Flow
-₹0 Cr
Cash burning
Spending more cash than the operations bring in
More Metrics
Operating Margin
42.7%
Good
Healthy core-business profitability
Net Margin
24.0%
Good
Strong bottom-line conversion
Current Ratio
476.83
Comfortable
Healthy short-term liquidity
Beta (vs Nifty)
0.51
Defensive
Steadier than the market
52W Range Position
42%
Mid-range
Mid-range
Technical Snapshot
SMA 20 / SMA 50
20.0 / 19.7
Bullish alignment (short > long)
Price vs SMA 200
Below
Long-term downtrend
RSI (14)
42.4
Neutral momentum
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹1 Cr
₹3 Cr
₹0 Cr
₹0 Cr
-47.4%
EBITDA
₹1 Cr
₹1 Cr
₹1 Cr
₹0 Cr
-25.3%
EBITDA Margin
51.0%
52.2%
248.7%
145.8%
—
PAT (Net Profit)
₹1 Cr
₹1 Cr
₹0 Cr
₹0 Cr
-25.6%
EPS
₹0.19
₹3.69
₹0.98
₹0.47
+34.8%
ROE
2.7%
2.6%
1.3%
0.6%
—
ROCE
3.4%
3.5%
1.7%
0.8%
—
Free Cash Flow
₹1 Cr
-₹1 Cr
-₹0 Cr
-₹0 Cr
—
🔴 Revenue has shrunk at 47.4% a year over 3 years.
🔴 EBITDA has shrunk at 25.3% a year over 3 years.
🟢 EBITDA Margin has risen from 51.0% to 145.8% over 3 years (+94.8 pts).
🔴 PAT (Net Profit) has shrunk at 25.6% a year over 3 years.
🟢 EPS has grown at 34.8% a year over 3 years.
🔴 ROE has fallen from 2.7% to 0.6% over 3 years (-2.0 pts).
🔴 ROCE has fallen from 3.4% to 0.8% over 3 years (-2.6 pts).
🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹0 Cr.
🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.
Watch Items
Revenue growth is negative (-5.1%) 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.
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.
