Capital India Finance Limited

Financial Services — Credit Services · NSE

₹19.17−₹0.16 (−0.83%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Capital India Finance Limited, a non-banking finance company, engages in the lending and forex businesses in India.

IndustryCredit Services

SectorFinancial Services

Employees894

Annual revenue₹500 Cr

How does it make money?

Turns over ₹500 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 894 employees supports ₹55.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹55.9 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -21% while net margin moved -218% 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-21%

Margin effect-218%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 7.4% a year

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

62/ 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

19.4x

2Y Median

585.8x

20 monthly readings · mean 471.1x · range 19.6x–879.7x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 97% below its 2y median of 585.8x. 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 is priced broadly in line with the peer median of 17.0x.

vs. its own history

Cheap

585.8x median over 20 months · -97%

vs. sector peers

Fair

17.0x median of 4 peers · +14%

vs. generic bands

Fair

15x–35x

EV/EBITDA

305.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -8.1% to 1.0% over 3 years.
Return on equity is rising
ROE has improved from -6.9% to 5.8%.
Return on capital is rising
ROCE has improved from -6.1% to 3.4%.

🔴 What Needs Attention0

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

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -8.1% to 1.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 97% 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.

🔴 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

1EBITDA margin holds above -1%✓ 1.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 5.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 4x✓ 7.7x
How much operating profit can fall before interest stops being comfortably covered.
4Valuation vs its own median of 585.8x✓ 19.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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 · 4 neutral · 4 weak

Market Cap

₹750 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.11x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.99

Profitable

Profitable on a per-share basis

ROE

5.8%

Weak

Weak capital efficiency

ROCE

3.4%

Weak

Low return on total capital employed

Debt/Equity

1.46x

Moderate

Moderate leverage

Revenue Growth (YoY)

-8.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

2413.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.10%

Modest

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

Free Cash Flow

-₹260 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

13.3%

Average

Average margins

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

20.5 / 20.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹630 Cr	₹649 Cr	₹521 Cr	₹500 Cr	-7.4%
EBITDA	-₹51 Cr	₹17 Cr	₹19 Cr	₹5 Cr	—
EBITDA Margin	-8.1%	2.6%	3.7%	1.0%	—
PAT (Net Profit)	-₹42 Cr	₹12 Cr	₹2 Cr	₹39 Cr	—
EPS	₹-1.07	₹0.3	₹0.04	₹0.97	—
ROE	-6.9%	1.9%	0.2%	5.8%	—
ROCE	-6.1%	0.4%	-0.8%	3.4%	—
Total Debt	₹924 Cr	₹899 Cr	₹996 Cr	₹961 Cr	+1.3%
Free Cash Flow	-₹74 Cr	₹99 Cr	-₹104 Cr	-₹260 Cr	—

🔴 Revenue has shrunk at 7.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹51 Cr to ₹5 Cr.

🟢 EBITDA Margin has risen from -8.1% to 1.0% over 3 years (+9.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹42 Cr to ₹39 Cr.

🟢 EPS has turned positive, from ₹-1.07 to ₹0.97.

🟢 ROE has risen from -6.9% to 5.8% over 3 years (+12.6 pts).

🟢 ROCE has risen from -6.1% to 3.4% over 3 years (+9.5 pts).

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,846 Cr

Total Liabilities

₹1,155 Cr

Cash & Equivalents

₹215 Cr

Operating Cash Flow

-₹254 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

92.7%

Corporate Actions

Dividend Rate

₹0.02

Ex-Dividend Date

19 Sept 2025

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

6 general

Systematix Corporate vs Centrum Capital vs Capital India Finance: Which Stock Should You Track

Univest, 14 Oct

Capital India Finance Slips 1.59% to ₹20.39: Key Support and Resistance Levels in Focus - ETF Liquidity

https://www.siam.in/, 31 Aug

Capital India To Offer NCDs Worth Up To 1 Billion Rupees Via Private Placement

Sahi, 16 Sept

Capital India Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Capital India Finance appoints Hitesh Kumar as Company Secretary

scanx.trade, 05 Oct

Unifinz Capital India Share Price Near All-Time High Today

Univest, 16 Oct

Watch Items

Revenue growth is negative (-8.9%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability

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