Avonmore Capital & Management Services Limited

Financial Services — Capital Markets · NSE

₹12.90+₹0.52 (+4.20%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Avonmore Capital & Management Services Limited provides non-banking financial and sub-broker advisory services in India.

IndustryCapital Markets

SectorFinancial Services

Employees4

Annual revenue₹190 Cr

How does it make money?

Turns over ₹190 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹47.48 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹47.48 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -9% while net margin moved -92% 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-9%

Margin effect-92%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.3% a year
✗ Profit has declined at 59.1% a year

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

59/ 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

23.9x

3Y Median

15.0x

40 monthly readings · mean 19.5x · range 1.5x–49.2x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 59% above its 3y median of 15.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 59% below the peer median of 58.4x.

vs. its own history

Expensive

15.0x median over 40 months · +59%

vs. sector peers

Cheap

58.4x median of 3 peers · -59%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.8x

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 Attention2

Return on equity is falling
ROE has dropped from 41.5% to 2.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 38.7% to 5.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 58.2 points, from 77.5% to 19.3%.
🟡Profit is decliningFinancial
Net profit is down 93% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 59% 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 77.5% to 19.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 59% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 41.5% to 2.0%. 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

1EBITDA margin holds above 17%✓ 19.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 2.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 15.0x✗ 23.9x 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

5 good · 3 neutral · 3 weak

Market Cap

₹364 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.88x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.54

Profitable

Profitable on a per-share basis

ROE

2.0%

Weak

Weak capital efficiency

ROCE

5.4%

Weak

Low return on total capital employed

Debt/Equity

4.93x

High

High leverage

Revenue Growth (YoY)

36.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

185.7%

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

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

24.5%

Good

Healthy core-business profitability

Net Margin

14.5%

Good

Strong bottom-line conversion

Current Ratio

5.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12.7 / 12.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹210 Cr	₹119 Cr	₹180 Cr	₹190 Cr	-3.3%
EBITDA	₹163 Cr	₹33 Cr	₹53 Cr	₹37 Cr	-39.1%
EBITDA Margin	77.5%	27.3%	29.4%	19.3%	—
PAT (Net Profit)	₹115 Cr	₹12 Cr	₹29 Cr	₹8 Cr	-59.1%
EPS	₹4.57	₹0.53	₹1.19	₹0.28	-60.6%
ROE	41.5%	4.1%	7.8%	2.0%	—
ROCE	38.7%	5.5%	9.5%	5.4%	—
Total Debt	₹26 Cr	₹24 Cr	₹21 Cr	₹4 Cr	-45.9%
Free Cash Flow	₹15 Cr	₹36 Cr	-₹12 Cr	₹13 Cr	-5.5%

🔴 Revenue has shrunk at 3.3% a year over 3 years.

🔴 EBITDA has shrunk at 39.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 77.5% to 19.3% over 3 years (-58.2 pts).

🔴 PAT (Net Profit) has shrunk at 59.1% a year over 3 years.

🔴 EPS has shrunk at 60.6% a year over 3 years.

🔴 ROE has fallen from 41.5% to 2.0% over 3 years (-39.5 pts).

🔴 ROCE has fallen from 38.7% to 5.4% over 3 years (-33.2 pts).

🟢 Total Debt has shrunk at 45.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 5.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹581 Cr

Total Liabilities

₹76 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.7%

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

Avonmore Capital & Management Services (AVONMORE.NS) Slips 2.89% to ₹12.43 as Stock Tests Lower Support Zone - Growth Factor

https://www.siam.in/, 08 Oct

Golden Cross Forms in Avonmore Capital & Management Servi...

MarketsMojo, 15 Oct

Avonmore Capital board approves draft scheme to merge four subsidiaries

scanx.trade, 11 Oct

Is Avonmore Capital and Management Services the Best Stock in Its Sector? A Look at the Numbers

Univest, 23 Sept

Avonmore Capital & Management Services Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Avonmore Capital Share Price and Technical Outlook

Kalkine India, 17 Sept

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

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Valuation

WeakGrowth · Risk

Points for each in the Score ↑

Unremarkable in both directions

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 15.0x · see Key things to watch ↑