Comfort Fincap Limited

Financial Services — Credit Services · BSE

₹7.75+₹0.15 (+1.97%)

DalalBaazaar Score

74 / 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, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

Comfort Fincap Limited operates as a non-banking finance company in India. The company offers loans against shares, securities, properties, and mutual funds, as well as provides finance to supply chain and funding to promoters. It also offers consumer durable loans.

IndustryCredit Services

SectorFinancial Services

Employees14

Annual revenue₹16 Cr

How does it make money?

Turns over ₹16 Cr a year. Of every ₹100 of sales, about ₹46 reaches shareholders as profit, with ₹77 left at the operating level before interest, tax and depreciation. Each of its 14 employees supports ₹1.16 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.16 Cr

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 +11% while net margin moved +38% 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+11%

Margin effect+38%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 7.5% is weak

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

88/ 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

7.2x

3Y Median

9.6x

40 monthly readings · mean 9.9x · range 7.6x–14.9x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 3y median of 9.6x. 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 58% below the peer median of 17.0x.

vs. its own history

Cheap

9.6x median over 40 months · -25%

vs. sector peers

Cheap

17.0x median of 4 peers · -58%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.3x

PEG

0.46

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 48.6% to 77.2% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 558% against revenue growth of 11% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 66% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 48.6% to 77.2%. 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 25% 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 58% 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?

Growth barely outpaces inflation
Revenue compounding at 3.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 75%✓ 77.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 7.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 4% a year✗ 3.7% CAGR
Latest reported year was 5.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 9.6x✓ 7.2x 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

4 good · 4 neutral · 3 weak

Market Cap

₹76 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.2x

Cheap

Cheap against the generic band

P/B Ratio

0.69x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.08

Profitable

Profitable on a per-share basis

ROE

7.5%

Weak

Weak capital efficiency

ROCE

10.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.36x

High

High leverage

Revenue Growth (YoY)

5.1%

Modest

Modest growth

Profit Growth (YoY)

-29.0%

Falling

Profits are shrinking

Dividend Yield

1.29%

Modest

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

Free Cash Flow

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

67.3%

Good

Healthy core-business profitability

Net Margin

42.9%

Good

Strong bottom-line conversion

Current Ratio

194.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.52

Defensive

Steadier than the market

52W Range Position

56%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

7.6 / 7.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹12 Cr	₹13 Cr	₹16 Cr	+3.7%
EBITDA	₹7 Cr	₹8 Cr	₹7 Cr	₹12 Cr	+21.0%
EBITDA Margin	48.6%	69.7%	54.8%	77.2%	—
PAT (Net Profit)	₹5 Cr	₹5 Cr	₹5 Cr	₹7 Cr	+15.5%
EPS	₹0.9	₹0.95	₹0.83	₹0.86	-1.4%
ROE	9.7%	9.4%	5.9%	7.5%	—
ROCE	8.6%	9.3%	6.4%	10.3%	—
Total Debt	₹28 Cr	₹26 Cr	₹22 Cr	₹4 Cr	-45.9%
Free Cash Flow	₹27 Cr	₹3 Cr	-₹20 Cr	₹13 Cr	-21.5%

🟢 Revenue has grown at 3.7% a year over 3 years.

🟢 EBITDA has grown at 21.0% a year over 3 years.

🟢 EBITDA Margin has risen from 48.6% to 77.2% over 3 years (+28.6 pts).

🟢 PAT (Net Profit) has grown at 15.5% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (-1.4% a year).

🔴 ROE has fallen from 9.7% to 7.5% over 3 years (-2.3 pts).

🟢 ROCE has risen from 8.6% to 10.3% over 3 years (+1.7 pts).

🟢 Total Debt has shrunk at 45.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 21.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹107 Cr

Total Liabilities

₹7 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹13 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.4%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

11 Sept 2026

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

2 positive1 negative3 general

Comfort Fincap Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 14 Sept

Comfort Fincap pledges 1.5M Deepak Builders shares for ₹4 crore

scanx.trade, 29 AugOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Comfort Fincap Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Compare with

Equitymaster, 22 Dec

Comfort Fincap shareholders approve ₹0.10 dividend, private placement

scanx.trade, 21 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Suraksha Diagnostic consolidated net profit rises 38.40% in the June 2026 quarter

Business Standard, 13 AugResults

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

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 · Growth · Valuation

MiddlingProfitability · 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.

2 of 4 tripwires tripped — Return on equity stays above 8%; Revenue growth stays above 4% a year · see Key things to watch ↑