Baid Finserv Limited

Financial Services — Credit Services · NSE

₹10.10+₹0.10 (+1.00%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

NEUTRAL

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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Baid Finserv Limited operates as a non-banking finance company in India. The company provides car, new and used commercial vehicle, gold, small and medium enterprises, tractors, construction equipment, and other asset backed loans, as well as loan against property.

IndustryCredit Services

SectorFinancial Services

Employees260

Annual revenue₹96 Cr

How does it make money?

Turns over ₹96 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 260 employees supports ₹36.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹36.8 lakh

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 +79% while net margin moved -20% 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+79%

Margin effect-20%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.10 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

77/ 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

9.4x

3Y Median

10.8x

40 monthly readings · mean 14.7x · range 8.1x–38.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 10.8x. 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 45% below the peer median of 17.0x.

vs. its own history

Fair

10.8x median over 40 months · -13%

vs. sector peers

Cheap

17.0x median of 4 peers · -45%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

14.4x

PEG

0.72

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

Receivables growing faster than sales
Receivables are up 220% against revenue growth of 79% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 328% against revenue growth of 79% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.2 points, from 38.3% to 32.1%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 27% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 45% 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 38.3% to 32.1%. 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

1Revenue growth stays above 16% a year✓ 21.5% CAGR
Latest reported year was -27.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 32.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 6.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 10.8x✓ 9.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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 · 3 neutral · 5 weak

Market Cap

₹164 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.4x

Cheap

Cheap against the generic band

P/B Ratio

0.67x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.08

Profitable

Profitable on a per-share basis

ROE

6.4%

Weak

Weak capital efficiency

ROCE

4.4%

Weak

Low return on total capital employed

Debt/Equity

1.23x

Moderate

Moderate leverage

Revenue Growth (YoY)

-27.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-18.2%

Falling

Profits are shrinking

Dividend Yield

0.99%

Modest

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

Free Cash Flow

-₹35 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

49.7%

Good

Healthy core-business profitability

Net Margin

28.6%

Good

Strong bottom-line conversion

Current Ratio

36.16

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

10.4 / 10.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

19.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹53 Cr	₹63 Cr	₹81 Cr	₹96 Cr	+21.5%
EBITDA	₹20 Cr	₹16 Cr	₹17 Cr	₹31 Cr	+14.6%
EBITDA Margin	38.3%	26.0%	21.6%	32.1%	—
PAT (Net Profit)	₹10 Cr	₹13 Cr	₹13 Cr	₹15 Cr	+13.0%
EPS	₹0.96	₹1.07	₹1.12	₹1.15	+6.3%
ROE	6.7%	7.7%	7.5%	6.4%	—
ROCE	4.9%	4.4%	3.7%	4.4%	—
Total Debt	₹171 Cr	₹242 Cr	₹255 Cr	₹285 Cr	+18.7%
Free Cash Flow	₹5 Cr	-₹25 Cr	₹0 Cr	-₹35 Cr	—

🟢 Revenue has grown at 21.5% a year over 3 years.

🟢 EBITDA has grown at 14.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 38.3% to 32.1% over 3 years (-6.2 pts).

🟢 PAT (Net Profit) has grown at 13.0% a year over 3 years.

🟢 EPS has grown at 6.3% a year over 3 years.

🟡 ROE has held roughly flat at 6.4% over 3 years.

🟡 ROCE has held roughly flat at 4.4% over 3 years.

🔴 Total Debt has grown at 18.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹35 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹539 Cr

Total Liabilities

₹306 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹33 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.2%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

16 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 mixed5 general

Baid Finserv Holds Flat at ₹12.03; BAIDFIN Remains Range-Bound Between ₹11.43 and ₹12.63 - Triple EMA

siam.in, 09 Sept

Baid Finserv Share Price: Buy or Sell

Univest, 08 Sept

Baid Finserv Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

Baid Finserv Ltd is Rated Sell

MarketsMojo, 06 Oct

Baid Finserv shareholders approve all AGM resolutions with 99.99% support

scanx.trade, 23 Sept

Why Did Baid Finserv (NSE: BAIDFIN) Shares Fall Despite Reporting Quarterly Profit?

Kalkine India, 18 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Revenue growth is negative (-27.3%) 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.
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

StrongBusiness Quality · Financial Health · Valuation

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

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