Asit C. Mehta Financial Services Limited

Financial Services — Capital Markets · BSE

₹115.85+₹3.85 (+3.44%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by short-term liabilities exceed short-term assets, 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, 6:57 pm

Understanding the Business

Company site ↗

The 60-second version of Asit C. Mehta Financial Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Asit C. Mehta Financial Services Limited provides advisory and consultancy services on fund mobilization and restructuring of companies in India.

IndustryCapital Markets

SectorFinancial Services

Employees1

Annual revenue₹62 Cr

How does it make money?

Turns over ₹62 Cr a year. Of every ₹100 of sales, about ₹-3 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 1 employees supports ₹61.76 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹61.76 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +101% while net margin moved -91% 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+101%

Margin effect-91%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

69/ 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

16.9x

Sector Median

58.4x

median of 3 sector peers

🟢Against its sector it trades 71% 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 · -71%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.0x

PEG

0.42

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 5.1% to 16.6% over 3 years.
Return on capital is rising
ROCE has improved from -0.6% to 15.7%.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.76 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 43% 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 5.1% to 16.6%. 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 71% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 20% a year✓ 26.3% CAGR
Latest reported year was 0.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ -7.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 0.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹96 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.69x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.84

Profitable

Profitable on a per-share basis

ROE

-7.2%

Weak

Weak capital efficiency

ROCE

15.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.29x

High

High leverage

Revenue Growth (YoY)

0.0%

Modest

Modest growth

Profit Growth (YoY)

39.9%

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 burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-15.7%

Weak

Thin margins leave little room for error

Net Margin

9.2%

Average

Average bottom-line conversion

Current Ratio

0.76

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

111.6 / 109.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

60.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹31 Cr	₹43 Cr	₹73 Cr	₹62 Cr	+26.3%
EBITDA	₹2 Cr	₹0 Cr	₹9 Cr	₹10 Cr	+87.4%
EBITDA Margin	5.1%	1.1%	12.4%	16.6%	—
PAT (Net Profit)	-₹9 Cr	-₹11 Cr	-₹3 Cr	-₹2 Cr	—
EPS	₹-18.25	₹-18.95	₹-3.35	₹-1.94	—
ROE	—	-37.0%	-10.8%	-7.2%	—
ROCE	-0.6%	-1.4%	9.9%	15.7%	—
Total Debt	₹116 Cr	₹93 Cr	₹118 Cr	₹106 Cr	-2.9%
Free Cash Flow	-₹7 Cr	-₹5 Cr	-₹7 Cr	-₹0 Cr	—

🟢 Revenue has grown at 26.3% a year over 3 years.

🟢 EBITDA has grown at 87.4% a year over 3 years.

🟢 EBITDA Margin has risen from 5.1% to 16.6% over 3 years (+11.5 pts).

🟢 ROE has risen from -37.0% to -7.2% over 3 years (+29.8 pts).

🟢 ROCE has risen from -0.6% to 15.7% over 3 years (+16.3 pts).

🟢 Total Debt has shrunk at 2.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹190 Cr

Total Liabilities

₹165 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.1%

Corporate Actions

Ex-Dividend Date

20 Aug 2010

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

Asit C Mehta Financial Services Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 22 Sept

Cable & Wire stocks: Polycab, KEI, R R Kabel, Quadrant Future slip up to 5%

Business Standard, 13 Oct

Asit C Mehta Financial Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 16 Sept

ASSAMENT Stock Price and Chart — NSE:ASSAMENT

TradingView, 18 Aug

Hyundai Motor shares offer just 5% upside; Asit C Mehta initiates with Hold rating, flags 5 risks

The Economic Times, 27 Mar

Asit C Mehta stocks to trade ex-rights. Dhyaani Tile and Marblez shares to trade ex-bonus today

Livemint, 07 Dec

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 · Growth

MiddlingValuation

WeakProfitability · 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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑