B. N. Rathi Securities Limited

Financial Services — Capital Markets · BSE

₹17.15+₹0.26 (+1.54%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

B. N. Rathi Securities Limited, together with its subsidiary, engages in the stock, currency, and commodity broking business in India. It provides margin trading facility, as well as depository services; and distributes mutual funds to its clients.

IndustryCapital Markets

SectorFinancial Services

Employees75

Annual revenue₹42 Cr

How does it make money?

Turns over ₹42 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹35 left at the operating level before interest, tax and depreciation. Each of its 75 employees supports ₹56.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin34.6%

Net margin22.4%

Revenue / employee₹56.2 lakh

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.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

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.

ROCE17.5%

ROE12.0%

Peer median ROE13.7%

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 +32% while net margin moved -5% 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+32%

Margin effect-5%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 9.6% is steady
✗ Profit CAGR of only 7.6%

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

87/ 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

6.3x

3Y Median

9.0x

40 monthly readings · mean 10.1x · range 5.0x–20.2x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 30% below its 3y median of 9.0x. 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 89% below the peer median of 58.4x.

vs. its own history

Cheap

9.0x median over 40 months · -30%

vs. sector peers

Cheap

58.4x median of 3 peers · -89%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

6.3x

P/B

0.91x

EV/EBITDA

0.3x

PEG

0.83

Dividend Yield

2.92%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 6.3x the stock trades 30% below its own median of 9.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 39.9% to 34.6% over 3 years.
Return on equity is falling
ROE has dropped from 17.3% to 12.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.1% to 17.5% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 154% against revenue growth of 32% — customers are taking longer to pay.
Short-term liquidity is tight
Current ratio of 0.97 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.2 points, from 39.9% to 34.6%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 24% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 30% 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 89% 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 39.9% to 34.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 17.3% to 12.0%. 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.
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 33%✓ 34.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 10%✓ 12.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 7% a year✓ 9.6% CAGR
Latest reported year was 34.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 9.0x✓ 6.3x 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

9 good · 2 neutral · 0 weak

Market Cap

₹72 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.3x

Cheap

Cheap against the generic band

P/B Ratio

0.91x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.72

Profitable

Profitable on a per-share basis

ROE

12.0%

Moderate

Moderate capital efficiency

ROCE

17.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

34.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

77.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.92%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹10 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹17.15

Operating Margin

21.0%

Good

Healthy core-business profitability

Net Margin

15.7%

Good

Strong bottom-line conversion

Current Ratio

0.97

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

55%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

17.1 / 18.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹32 Cr	₹37 Cr	₹37 Cr	₹42 Cr	+9.6%
EBITDA	₹13 Cr	₹15 Cr	₹13 Cr	₹15 Cr	+4.6%
EBITDA Margin	39.9%	40.0%	36.8%	34.6%	—
PAT (Net Profit)	₹8 Cr	₹11 Cr	₹9 Cr	₹9 Cr	+7.6%
EPS	₹2.26	₹2.88	₹2.27	₹2.25	-0.1%
ROE	17.3%	16.7%	13.3%	12.0%	—
ROCE	27.1%	23.6%	18.5%	17.5%	—
Total Debt	—	₹0 Cr	₹0 Cr	₹0 Cr	—
Free Cash Flow	-₹5 Cr	₹4 Cr	-₹23 Cr	₹10 Cr	—

🟢 Revenue has grown at 9.6% a year over 3 years.

🟢 EBITDA has grown at 4.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 39.9% to 34.6% over 3 years (-5.2 pts).

🟢 PAT (Net Profit) has grown at 7.6% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (-0.1% a year).

🔴 ROE has fallen from 17.3% to 12.0% over 3 years (-5.3 pts).

🔴 ROCE has fallen from 27.1% to 17.5% over 3 years (-9.6 pts).

🟢 Free Cash Flow has turned positive, from -₹5 Cr to ₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹206 Cr

Total Liabilities

₹127 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹67 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.8%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

07 Aug 2026

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

1 positive5 general

Darshan P Desai HUF sells 5.45 lakh BN Rathi shares, stake down to 4.11%

scanx.trade, 17 Oct

B.N.RATHI SECURITIES LTD. Share Price

Upstox, 05 May

BN Rathi Securities Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

BN Rathi Securities Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 03 Sept

B.N. Rathi Securities FY26 Net Profit Rises to Rs 1,022 Lakhs

scanx.trade, 31 MarResults

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

Roopa Screen IPO Date,GMP, Price Band, Subscription & Allotment

IndiaIPO, 21 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

🟢Business QualityStrong13.9/20

🟢Financial HealthStrong17/20

🟡GrowthModest10.4/20

🟡ProfitabilityModerate8.2/15

🟢ValuationAttractive12.8/15

🟡RiskModerate6.2/10

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.

This thesis breaks if

✓EBITDA margin holds above 33%34.6%
✓Return on equity stays above 10%12.0%
✓Revenue growth stays above 7% a year9.6% CAGR
✓Valuation vs its own median of 9.0x6.3x today