Ashika Global Securities Limited

Financial Services — Credit Services · NSE

₹393.00+₹7.85 (+2.04%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, 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 modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ashika Global Securities Limited provides investment and lending solutions in India. It provides loans and advances, loans against securities, inter-corporate deposits, and investment in shares and securities.

IndustryCredit Services

SectorFinancial Services

Employees21

Annual revenue₹189 Cr

How does it make money?

Turns over ₹189 Cr a year. Of every ₹100 of sales, about ₹32 reaches shareholders as profit, with ₹66 left at the operating level before interest, tax and depreciation. Each of its 21 employees supports ₹9.02 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹9.02 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK 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 ROE16.5%

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 +1564% while net margin moved -38% 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+1564%

Margin effect-38%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.41 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

50/ 100

Fair

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

32.7x

Sector Median

17.0x

median of 4 sector peers

⚠️Against its sector it trades 92% above the peer median of 17.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

17.0x median of 4 peers · +92%

vs. generic bands

Fair

15x–35x

EV/EBITDA

24.7x

PEG

0.28

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 57.4% to 66.0% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.3% to 5.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 13.8% to 8.2% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 276% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 57.4% to 66.0%. 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?

A premium to the sector to defend
It trades 92% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 10.3% to 5.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1Revenue growth stays above 116% a year✓ 155.3% CAGR
Latest reported year was 129.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 64%✓ 66.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 5.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 4x✓ 6.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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

3 good · 6 neutral · 2 weak

Market Cap

₹2,905 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.50x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.03

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

8.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

129.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

8.7%

Modest

Slow profit growth

Dividend Yield

0.13%

Modest

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

Free Cash Flow

-₹86 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

81.0%

Good

Healthy core-business profitability

Net Margin

29.8%

Good

Strong bottom-line conversion

Current Ratio

2.92

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

RSI (14)

42.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹16 Cr	₹213 Cr	₹189 Cr	+155.3%
EBITDA	₹7 Cr	₹13 Cr	₹112 Cr	₹125 Cr	+167.4%
EBITDA Margin	57.4%	81.5%	52.5%	66.0%	—
PAT (Net Profit)	₹6 Cr	₹11 Cr	₹76 Cr	₹60 Cr	+117.2%
EPS	₹4.95	₹9.01	₹11.85	₹7.98	+17.3%
ROE	10.3%	15.7%	7.6%	5.2%	—
ROCE	13.8%	19.1%	9.1%	8.2%	—
Total Debt	₹0 Cr	₹25 Cr	₹220 Cr	₹262 Cr	+1884.4%
Free Cash Flow	₹10 Cr	-₹25 Cr	-₹194 Cr	-₹86 Cr	—

🟢 Revenue has grown at 155.3% a year over 3 years.

🟢 EBITDA has grown at 167.4% a year over 3 years.

🟢 EBITDA Margin has risen from 57.4% to 66.0% over 3 years (+8.5 pts).

🟢 PAT (Net Profit) has grown at 117.2% a year over 3 years.

🟢 EPS has grown at 17.3% a year over 3 years.

🔴 ROE has fallen from 10.3% to 5.2% over 3 years (-5.1 pts).

🔴 ROCE has fallen from 13.8% to 8.2% over 3 years (-5.6 pts).

🔴 Total Debt has grown at 1884.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹86 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,862 Cr

Total Liabilities

₹694 Cr

Cash & Equivalents

₹82 Cr

Operating Cash Flow

-₹86 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

1.3%

Insider Holding

91.8%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

1 positive5 general

Ashika Global Securities pays ₹0.50 per share final dividend for FY26

scanx.trade, 14 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Ashika Global Securities Ltd | Stock Share Price Live

MarketSmith India, 02 Oct

ASHIKAG Stock Price and Chart — NSE:ASHIKAG

TradingView, 27 Jul

Ashika Global Securities (BSE:543766) - Stock Analysis

Simply Wall Street, 28 Jun

Ashika Credit Capital Upper Circuit Today: Price, Data and Peers

Univest, 13 Oct

Ashika Global Securities allots 2 lakh equity shares on conversion of warrants

Business Standard, 29 Jun

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

MiddlingGrowth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

1 of 4 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑