Crescentis Capital Limited

Financial Services — Capital Markets · BSE

₹107.05+₹1.25 (+1.18%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

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, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Crescentis Capital Limited, a non-banking finance company, engages in the investment and financing activities in India. It is also involved in the proprietary investments in stocks and securities.

IndustryCapital Markets

SectorFinancial Services

Employees13

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹-69 reaches shareholders as profit, with ₹-79 left at the operating level before interest, tax and depreciation. Each of its 13 employees supports ₹28.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-79.2%

Net margin-69.3%

Revenue / employee₹28.0 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.

ROCE-3.2%

ROE-3.3%

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 +640% while net margin moved -147% 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+640%

Margin effect-147%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.59 — amplifies market moves in both directions
✗ 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

70/ 100

Good

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

Valuation

27/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

93.1x

3Y Median

11.9x

40 monthly readings · mean 69.3x · range 9.5x–277.7x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 684% above its 3y median of 11.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 59% above the peer median of 58.4x.

vs. its own history

Expensive

11.9x median over 40 months · +684%

vs. sector peers

Expensive

58.4x median of 3 peers · +59%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

93.1x

P/B

2.40x

EV/EBITDA

—

PEG

2.52

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 177.0% to -79.2% over 3 years.
Return on equity is falling
ROE has dropped from 3.1% to -3.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 3.5% to -3.2% — often a sign of competition or overexpansion.
Valuation above its historical average
At 93.1x the stock trades 684% above its own median of 11.9x.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -10.4x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹3 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 256.2 points, from 177.0% to -79.2%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 40% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 177.0% to -79.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 684% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 3.1% to -3.3%. 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.
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

1Revenue growth stays above 71% a year✓ 94.8% CAGR
Latest reported year was 121.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -81%✓ -79.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ -3.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ -10.4x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 11.9x✗ 93.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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 · 3 neutral · 4 weak

Market Cap

₹182 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

93.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.40x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.15

Profitable

Profitable on a per-share basis

ROE

-3.3%

Weak

Weak capital efficiency

ROCE

-3.2%

Weak

Low return on total capital employed

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

121.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

36.9%

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

-₹44 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹107.05

Operating Margin

88.7%

Good

Healthy core-business profitability

Net Margin

25.9%

Good

Strong bottom-line conversion

Current Ratio

241.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.59

High swing

Swings more than the market in both directions

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

102.3 / 103.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹4 Cr	+94.8%
EBITDA	₹1 Cr	₹14 Cr	-₹6 Cr	-₹3 Cr	—
EBITDA Margin	177.0%	3431.5%	-1855.3%	-79.2%	—
PAT (Net Profit)	₹1 Cr	₹12 Cr	-₹5 Cr	-₹3 Cr	—
EPS	₹0.59	₹9.99	₹-4.48	₹-1.57	—
ROE	3.1%	34.1%	-18.2%	-3.3%	—
ROCE	3.5%	38.6%	-19.4%	-3.2%	—
Free Cash Flow	₹2 Cr	-₹2 Cr	-₹2 Cr	-₹44 Cr	—

🟢 Revenue has grown at 94.8% a year over 3 years.

🔴 EBITDA has turned negative, from ₹1 Cr to -₹3 Cr.

🔴 EBITDA Margin has fallen from 177.0% to -79.2% over 3 years (-256.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹3 Cr.

🔴 EPS has turned negative, from ₹0.59 to ₹-1.57.

🔴 ROE has fallen from 3.1% to -3.3% over 3 years (-6.4 pts).

🔴 ROCE has fallen from 3.5% to -3.2% over 3 years (-6.7 pts).

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹44 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹91 Cr

Total Liabilities

₹15 Cr

Total Debt

₹14 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹44 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.6%

Corporate Actions

Ex-Dividend Date

07 Sept 2011

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 mixed5 general

Crescentis Capital files draft offer for ₹80 crore rights issue

scanx.trade, 30 Sept

Crescentis Capital Ltd

Equitypandit, 18 Mar

Som Datt Finance Share Price News: Price Fall and Valuation

Univest, 22 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Crescentis Capital Limited Receives BSE In-Principle Approval for 13,00,000 ESOP Shares

scanx.trade, 04 Apr

Investment Companies Penny Stocks India 2027: 5 Picks

Univest, 17 Sept

Crescentis Capital re-appoints MD and CEO for five years

scanx.trade, 29 May

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 QualityAdequate10.1/20

🟢Financial HealthStrong17/20

🟢GrowthStrong18.4/20

🔴ProfitabilityWeak6.7/15

🔴ValuationDemanding4.9/15

🔴RiskHigh2.7/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 71% a year94.8% CAGR
✓EBITDA margin holds above -81%-79.2%
✗Return on equity stays above 8%-3.3%
✗Interest cover stays above 3x-10.4x
✗Valuation vs its own median of 11.9x93.1x today