Ashirwad Capital Limited

Financial Services — Capital Markets · BSE

₹2.51+₹0.01 (+0.40%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Ashirwad Capital Limited, a non-banking finance company, engages in the investment and lending activities in India. The company also manufactures carvings of precious and semi-precious stones, paintings, and jewellery, as well as receiving compensation against property.

IndustryCapital Markets

SectorFinancial Services

Employees1

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹61 reaches shareholders as profit, with ₹89 left at the operating level before interest, tax and depreciation. Each of its 1 employees supports ₹1.70 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin88.8%

Net margin61.2%

Revenue / employee₹1.70 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.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

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.

ROCE7.7%

ROE5.5%

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 +77% while net margin moved -23% 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+77%

Margin effect-23%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.33 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

68/ 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

17.9x

3Y Median

30.3x

40 monthly readings · mean 37.4x · range 20.9x–91.7x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 41% below its 3y median of 30.3x. 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 69% below the peer median of 58.4x.

vs. its own history

Cheap

30.3x median over 40 months · -41%

vs. sector peers

Cheap

58.4x median of 3 peers · -69%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

17.9x

P/B

1.15x

EV/EBITDA

16.9x

PEG

1.62

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 17.9x the stock trades 41% below its own median of 30.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.02 — near-term obligations exceed near-term assets.

Red Flags

1 item require attention · 1 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 13.3x to 5.1x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 41% 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 69% 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 16% a year✓ 20.9% CAGR
Latest reported year was 695.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 87%✓ 88.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 5.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 4x✓ 5.1x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 30.3x✓ 17.9x 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

6 good · 3 neutral · 2 weak

Market Cap

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.15x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.14

Profitable

Profitable on a per-share basis

ROE

5.5%

Weak

Weak capital efficiency

ROCE

7.7%

Weak

Low return on total capital employed

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

695.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.4%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹2.51

Operating Margin

87.4%

Good

Healthy core-business profitability

Net Margin

61.3%

Good

Strong bottom-line conversion

Current Ratio

0.02

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2.5 / 2.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹2 Cr	₹1 Cr	₹2 Cr	+20.9%
EBITDA	₹1 Cr	₹2 Cr	₹1 Cr	₹2 Cr	+20.8%
EBITDA Margin	89.0%	106.6%	88.6%	88.8%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹1 Cr	₹1 Cr	+11.1%
EPS	₹0.09	₹0.17	₹0.09	₹0.12	+11.5%
ROE	5.7%	8.2%	4.4%	5.5%	—
ROCE	6.4%	9.1%	5.4%	7.7%	—
Total Debt	—	—	₹3 Cr	₹3 Cr	—
Free Cash Flow	-₹2 Cr	-₹1 Cr	₹2 Cr	₹0 Cr	—

🟢 Revenue has grown at 20.9% a year over 3 years.

🟢 EBITDA has grown at 20.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 88.8% over 3 years.

🟢 PAT (Net Profit) has grown at 11.1% a year over 3 years.

🟢 EPS has grown at 11.5% a year over 3 years.

🟡 ROE has held roughly flat at 5.5% over 3 years.

🟢 ROCE has risen from 6.4% to 7.7% over 3 years (+1.4 pts).

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22 Cr

Total Liabilities

₹3 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

52.2%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

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

2 positive1 mixed3 general

87 Best Penny Stocks Under 5 Rs In India For October 2026

Samco, 14 Oct

Ashirwad Capital closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 24 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Mangalam Industrial Finance standalone net profit rises 276.47% in the June 2026 quarter

Business Standard, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Ashirwad Capital FY26 Results: Net profit up 22% to ₹1.04 crore

scanx.trade, 02 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

ASHIRWAD CAPITAL LTD. Share Price

Upstox, 26 Mar

Ashirwad Capital Ltd Share Price

Business Today, 31 Jan

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

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟡GrowthModest12.9/20

🟡ProfitabilityModerate8.9/15

🟢ValuationAttractive12/15

🟡RiskModerate5.2/10

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.

This thesis breaks if

✓Revenue growth stays above 16% a year20.9% CAGR
✓EBITDA margin holds above 87%88.8%
✗Return on equity stays above 8%5.5%
✓Interest cover stays above 4x5.1x
✓Valuation vs its own median of 30.3x17.9x today