BF Investment Limited

Financial Services — Asset Management · NSE

₹435.00+₹3.50 (+0.81%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

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 obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

BF Investment Limited engages in investment and financing businesses in India. BF Investment Limited was incorporated in 2009 and is based in Pune, India.

IndustryAsset Management

SectorFinancial Services

Employees2

Annual revenue₹40 Cr

How does it make money?

Turns over ₹40 Cr a year. Of every ₹100 of sales, about ₹699 reaches shareholders as profit, with ₹931 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹20.18 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹20.18 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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 +154% while net margin moved -57% 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+154%

Margin effect-57%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Revenue CAGR of 36.4% — compounding well above nominal GDP
✗ Profit CAGR of only 2.8%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of 19.7% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

84/ 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

4.2x

3Y Median

7.0x

40 monthly readings · mean 6.6x · range 3.7x–10.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 3y median of 7.0x. 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 75% below the peer median of 17.0x.

vs. its own history

Cheap

7.0x median over 40 months · -40%

vs. sector peers

Cheap

17.0x median of 4 peers · -75%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.1x

PEG

1.48

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 capital is falling
ROCE has declined from 6.7% to 4.0% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 179% against revenue growth of 154% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 1233.2 points, from 2164.1% to 930.9%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 40% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 75% 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 2164.1% to 930.9%. 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

1Revenue growth stays above 27% a year✓ 36.4% CAGR
Latest reported year was 19.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 929%✓ 930.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 3.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 7.0x✓ 4.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

8 good · 1 neutral · 2 weak

Market Cap

₹1,639 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.2x

Cheap

Cheap against the generic band

P/B Ratio

0.19x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹103.43

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

0.00x

Low

Conservative leverage

Revenue Growth (YoY)

19.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

280.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.30%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹33 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

89.8%

Good

Healthy core-business profitability

Net Margin

498.3%

Good

Strong bottom-line conversion

Current Ratio

435.78

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

436.2 / 446.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16 Cr	₹19 Cr	₹35 Cr	₹40 Cr	+36.4%
EBITDA	₹344 Cr	₹579 Cr	₹303 Cr	₹376 Cr	+2.9%
EBITDA Margin	2164.1%	2973.0%	865.5%	930.9%	—
PAT (Net Profit)	₹259 Cr	₹434 Cr	₹222 Cr	₹282 Cr	+2.8%
EPS	₹68.84	₹115.15	₹59.01	₹74.87	+2.8%
ROE	5.5%	7.0%	3.2%	3.3%	—
ROCE	6.7%	8.5%	4.0%	4.0%	—
Free Cash Flow	-₹0 Cr	₹9 Cr	₹21 Cr	₹33 Cr	—

🟢 Revenue has grown at 36.4% a year over 3 years.

🟢 EBITDA has grown at 2.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 2164.1% to 930.9% over 3 years (-1233.2 pts).

🟢 PAT (Net Profit) has grown at 2.8% a year over 3 years.

🟢 EPS has grown at 2.8% a year over 3 years.

🔴 ROE has fallen from 5.5% to 3.3% over 3 years (-2.2 pts).

🔴 ROCE has fallen from 6.7% to 4.0% over 3 years (-2.7 pts).

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹33 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,394 Cr

Total Liabilities

₹855 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹99 Cr

Operating Cash Flow

₹33 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.2%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

03 Jul 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

2 positive1 mixed1 negative2 general

BF Investment Q1FY27 consolidated net profit up 279% to ₹1,459.93 million

scanx.trade, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Pilani Investment vs Gretex Corporate vs BF Investment: Which Stock Should You Track

Univest, 14 Oct

BF Investment Q4 Standalone Net Profit Surges 182% to ₹87.3 Crore YoY

Sahi, 29 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Volume Gainers Today, July 10, 2026: Shoppers Stop, BF Investment and ION Exchange See Heavy Trading Activity

HDFC Sky, 10 Jul

BF Investment Share Price Falls 7% After Recent Rally

Kalkine India, 14 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

BF Investment Ltd Downgraded to Sell Amid Mixed Financial and Technical Signals

MarketsMojo, 01 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

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 · 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 ↑