Classic Leasing & Finance Limited

Financial Services — Credit Services · BSE

₹47.00−₹0.31 (−0.66%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by 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, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Classic Leasing & Finance Limited, a non-banking finance company, engages in leasing and financing activities in India.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹1991 reaches shareholders as profit, with ₹-291 left at the operating level before interest, tax and depreciation.

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 -65% while net margin moved +8064% 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-65%

Margin effect+8064%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -1.62 — 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

70/ 100

Good

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

Valuation

61/ 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

26.4x

3Y Median

44.7x

40 monthly readings · mean 66.5x · range 21.2x–203.6x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 3y median of 44.7x. 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 55% above the peer median of 17.0x.

vs. its own history

Cheap

44.7x median over 40 months · -41%

vs. sector peers

Expensive

17.0x median of 4 peers · +55%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

0.13

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from -10.3% to -1.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 195.7 points, from -95.4% to -291.1%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 308% 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 41% 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.
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 -95.4% to -291.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 55% above the peer median. That premium needs a reason that persists, or it closes.
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 -293%✓ -291.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 13%✓ 14.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 44.7x✓ 26.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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 · 5 neutral · 3 weak

Market Cap

₹58 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.4x

Fair

Fairly valued against the generic band

P/B Ratio

6.94x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.78

Profitable

Profitable on a per-share basis

ROE

14.8%

Moderate

Moderate capital efficiency

ROCE

-1.1%

Weak

Low return on total capital employed

Debt/Equity

0.99x

Moderate

Moderate leverage

Revenue Growth (YoY)

167.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-31.6%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

83.0%

Good

Healthy core-business profitability

Net Margin

86.0%

Good

Strong bottom-line conversion

Current Ratio

947.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-1.62

Defensive

Steadier than the market

52W Range Position

45%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

50.3 / 54.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-29.5%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
EBITDA Margin	-95.4%	-28.3%	-289.3%	-291.1%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+205.7%
EPS	₹0.13	₹0.61	₹1.54	₹2.22	+157.5%
ROCE	-10.3%	-1.5%	-5.6%	-1.1%	—
Total Debt	₹6 Cr	₹8 Cr	₹10 Cr	₹7 Cr	+5.9%
Free Cash Flow	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+95.6%

🔴 Revenue has shrunk at 29.5% a year over 3 years.

🔴 EBITDA Margin has fallen from -95.4% to -291.1% over 3 years (-195.7 pts).

🟢 PAT (Net Profit) has grown at 205.7% a year over 3 years.

🟢 EPS has grown at 157.5% a year over 3 years.

🟢 ROCE has risen from -10.3% to -1.1% over 3 years (+9.2 pts).

🔴 Total Debt has grown at 5.9% a year over 3 years.

🟢 Free Cash Flow has grown at 95.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

90.9%

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

ELEVATE CAMPUSES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 14 Oct

Classic Leasing discloses detailed AGM voting results, Sony reappointed

scanx.trade, 19 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Classic Leasing & Finance Ltd. Share Price

Upstox, 23 Mar

Classic Leasing & Finance Limited (540481) Company Information

Simply Wall Street, 15 Nov

CLFL Stock Price and Chart — BSE:CLFL

TradingView, 05 Aug

Classic Leasing & Finance Ltd Share Price

Business Today, 31 Jan

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 · Profitability

MiddlingGrowth · Valuation

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 high-severity red flag sits above this conclusion and should be read first.

All 3 tripwires holding · see Key things to watch ↑