Banas Finance Limited

Financial Services — Credit Services · BSE

₹6.68−₹0.08 (−1.18%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Banas Finance Limited, a non-banking finance company, engages in the finance, lending, and shares and securities trading activities in India. The company was formerly known as Pioneer Leasing Company Limited and changed its name to Banas Finance Limited in August 1986.

IndustryCredit Services

SectorFinancial Services

Employees7

Annual revenue₹52 Cr

How does it make money?

Turns over ₹52 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹7.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.38 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 +195% while net margin moved -104% 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+195%

Margin effect-104%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.58 — 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

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

54/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

3.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -588.2% to 32.5% over 3 years.
Return on equity is rising
ROE has improved from -35.9% to 4.8%.
Return on capital is rising
ROCE has improved from -63.7% to 10.5%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 40% 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 -588.2% to 32.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

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 33% a year✓ 43.4% CAGR
Latest reported year was -80.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 32.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 4.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.

Investment Checklist

6 / 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

₹60 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-2.02

Loss-making

Negative earnings per share — the business is losing money

ROE

4.8%

Weak

Weak capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

-80.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-73.0%

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

₹24 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

98.3%

Good

Healthy core-business profitability

Net Margin

31.6%

Good

Strong bottom-line conversion

Current Ratio

2703.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6.9 / 7.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹18 Cr	₹45 Cr	₹40 Cr	₹52 Cr	+43.4%
EBITDA	-₹103 Cr	₹38 Cr	-₹11 Cr	₹17 Cr	—
EBITDA Margin	-588.2%	83.4%	-26.3%	32.5%	—
PAT (Net Profit)	-₹55 Cr	₹4 Cr	-₹6 Cr	₹7 Cr	—
EPS	₹-8.4	₹0.35	₹-0.03	₹1.26	—
ROE	-35.9%	2.8%	-3.3%	4.8%	—
ROCE	-63.7%	21.1%	-7.7%	10.5%	—
Total Debt	₹7 Cr	₹6 Cr	₹1 Cr	₹1 Cr	-55.9%
Free Cash Flow	-₹1 Cr	-₹6 Cr	-₹0 Cr	₹24 Cr	—

🟢 Revenue has grown at 43.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹103 Cr to ₹17 Cr.

🟢 EBITDA Margin has risen from -588.2% to 32.5% over 3 years (+620.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹55 Cr to ₹7 Cr.

🟢 EPS has turned positive, from ₹-8.4 to ₹1.26.

🟢 ROE has risen from -35.9% to 4.8% over 3 years (+40.7 pts).

🟢 ROCE has risen from -63.7% to 10.5% over 3 years (+74.2 pts).

🟢 Total Debt has shrunk at 55.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹138 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹24 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.7%

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 negative5 general

Banas Finance Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Banas Finance revises auditor report for FY26 to fix format

scanx.trade, 10 Jul

Compare BANAS FINANCE with

Equitymaster, 23 Sept

Banas Finance consolidated net profit declines 53.25% in the June 2026 quarter

Business Standard, 15 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Compare BANAS FINANCE with

Equitymaster, 24 Aug

Prismx Global Ventures Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 08 Oct

Watch Items

Revenue growth is negative (-80.7%) 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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

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