Corporate Merchant Bankers Limited

Financial Services — Credit Services · BSE

₹51.90₹0.00 (0.00%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

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, with both sales and profits growing well. 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 Corporate Merchant Bankers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Corporate Merchant Bankers Limited engages in the trading and investment in shares in India. The company was incorporated in 1994 and is based in Ahmedabad, India. Corporate Merchant Bankers Limited is a subsidiary of Cosmos Industries Limited.

IndustryCredit Services

SectorFinancial Services

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%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.28 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

69/ 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

16.5x

1.3Y Median

29.9x

16 monthly readings · mean 48.3x · range 6.9x–133.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 45% below its 1.3y median of 29.9x. 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

29.9x median over 16 months · -45%

vs. sector peers

Fair

17.0x median of 4 peers · -3%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

1.26

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1821% 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 45% 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

1Return on equity stays above 8%✗ 2.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Valuation vs its own median of 29.9x✓ 16.5x 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

4 good · 4 neutral · 3 weak

Market Cap

₹329 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.5x

Fair

Fairly valued against the generic band

P/B Ratio

3.30x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.15

Profitable

Profitable on a per-share basis

ROE

2.3%

Weak

Weak capital efficiency

ROCE

-2.2%

Weak

Low return on total capital employed

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

56.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹55 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-20.0%

Weak

Thin margins leave little room for error

Net Margin

17.9%

Good

Strong bottom-line conversion

Current Ratio

4.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

49.3 / 46.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

75.4

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	—	—	—
EBITDA	-₹0 Cr	-₹0 Cr	-₹1 Cr	-₹3 Cr	—
EBITDA Margin	-10.9%	-233.3%	—	—	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹2 Cr	₹2 Cr	—
EPS	₹-0.02	₹-0.69	₹6.55	₹0.39	—
ROE	-0.2%	-7.2%	40.9%	2.3%	—
ROCE	-0.2%	-1.2%	-0.8%	-2.2%	—
Total Debt	₹0 Cr	₹16 Cr	₹91 Cr	₹48 Cr	+852.6%
Free Cash Flow	—	-₹0 Cr	-₹75 Cr	-₹55 Cr	—

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹2 Cr.

🟢 EPS has turned positive, from ₹-0.02 to ₹0.39.

🟢 ROE has risen from -0.2% to 2.3% over 3 years (+2.6 pts).

🔴 ROCE has fallen from -0.2% to -2.2% over 3 years (-1.9 pts).

🔴 Total Debt has grown at 852.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹156 Cr

Total Liabilities

₹51 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹55 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

97.9%

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

Corporate Merchant Bankers submits revised AGM voting results

scanx.trade, 09 OctResults

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

Corporate Merchant Bankers Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Sebi plans review of merchant banking rules, IPO cost structure soon

Business Standard, 23 Sept

Zerodha unit gets nod for merchant banking

The Economic Times, 01 Sept

Zerodha gets SEBI nod for merchant banking; bets on low-cost, no-hard-selling model

Moneycontrol.com, 02 Sept

Zerodha Merchant Banking Gets SEBI Approval, Eyes Entry Into IPO Business

NiftyTrader, 02 Sept

Watch Items

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 overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability

WeakRisk

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 of 2 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑