Asia Capital Limited

Financial Services — Capital Markets · BSE

₹93.75+₹4.45 (+4.98%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:53 pm

Understanding the Business

Company site ↗

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

What does this company do?

Asia Capital Limited operates as a non-deposit taking non-banking financial company in India.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹49 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation.

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 -44% 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-44%

Margin effect+23%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 17.3% a year
✗ Profit has declined at 11.5% a year
✗ Latest-year revenue growth of -43.2% is below the longer-term trend — momentum is fading
✗ Profit fell 54.8% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

60/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

21.8x

3Y Median

25.1x

40 monthly readings · mean 49.4x · range 17.9x–260.6x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 13% below its 3y median of 25.1x. 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 63% below the peer median of 58.4x.

vs. its own history

Fair

25.1x median over 40 months · -13%

vs. sector peers

Cheap

58.4x median of 3 peers · -63%

vs. generic bands

Fair

15x–35x

EV/EBITDA

1322.8x

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 Attention1

Return on capital is falling
ROCE has declined from 4.7% to 0.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 45.6 points, from 53.5% to 7.9%.
🟡Profit is decliningFinancial
Net profit is down 31% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 63% 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?

Margins are being competed away
EBITDA margin has fallen from 53.5% to 7.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 6%✓ 7.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 2.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 25.1x✓ 21.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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 · 5 neutral · 5 weak

Market Cap

₹29 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.8x

Fair

Fairly valued against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹4.31

Profitable

Profitable on a per-share basis

ROE

2.6%

Weak

Weak capital efficiency

ROCE

0.4%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-43.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-54.8%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

64.78

Comfortable

Healthy short-term liquidity

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

106.4 / 108.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

19.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-17.3%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-56.2%
EBITDA Margin	53.5%	50.6%	66.6%	7.9%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-11.5%
EPS	₹0.63	₹0.66	₹0.97	₹0.44	-11.3%
ROE	4.2%	4.2%	5.8%	2.6%	—
ROCE	4.7%	4.5%	4.8%	0.4%	—
Total Debt	₹1 Cr	₹1 Cr	₹2 Cr	—	—
Free Cash Flow	-₹0 Cr	-₹0 Cr	₹6 Cr	-₹3 Cr	—

🔴 Revenue has shrunk at 17.3% a year over 3 years.

🔴 EBITDA has shrunk at 56.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 53.5% to 7.9% over 3 years (-45.6 pts).

🔴 PAT (Net Profit) has shrunk at 11.5% a year over 3 years.

🔴 EPS has shrunk at 11.3% a year over 3 years.

🔴 ROE has fallen from 4.2% to 2.6% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 4.7% to 0.4% over 3 years (-4.3 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹3 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

93.7%

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

Asia Capital CS Prateek Sharma withdraws resignation, continues role

scanx.trade, 08 Oct

Compare Company

Equitymaster, 27 Sept

Asia Capital Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Asia’s capital surplus favours the safest winners

Financial Times, 12 Jul

Asia Capital passes borrowing limit of ₹100 crore at 42nd AGM

scanx.trade, 19 Sept

"Vietnam: A New Position in Asian Capital Allocation Strategies"

Vietnam.vn, 13 Oct

Watch Items

Revenue growth is negative (-43.2%) 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.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑