Capital Trade Links Limited

Financial Services — Credit Services · BSE

₹24.04₹0.00 (0.00%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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, 6:06 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 Capital Trade Links Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Capital Trade Links Limited, a non-deposit accepting non-banking financial company, provides loans and financing services in India.

IndustryCredit Services

SectorFinancial Services

Employees16

Annual revenue₹33 Cr

How does it make money?

Turns over ₹33 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹37 left at the operating level before interest, tax and depreciation. Each of its 16 employees supports ₹2.04 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin37.2%

Net margin5.8%

Revenue / employee₹2.04 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.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

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.

ROCE1.4%

ROE2.6%

Peer median ROE16.5%

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 +96% while net margin moved -62% 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+96%

Margin effect-62%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 160.3x is demanding — it needs sustained high growth to justify
✗ P/E is 71% above its own historical median of 93.7x — expensive by its own standards

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

25/ 100

Expensive

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

160.3x

3Y Median

93.7x

40 monthly readings · mean 91.8x · range 23.0x–194.5x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 71% above its 3y median of 93.7x. 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 843% above the peer median of 17.0x.

vs. its own history

Expensive

93.7x median over 40 months · +71%

vs. sector peers

Expensive

17.0x median of 4 peers · +843%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

160.3x

P/B

4.20x

EV/EBITDA

36.2x

PEG

10.14

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 6.5% to 2.6% — each rupee of shareholder capital earns less than it did.
Valuation above its historical average
At 160.3x the stock trades 71% above its own median of 93.7x.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 25% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

The price already assumes success
The stock trades 71% 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 6.5% to 2.6%. 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 19% a year✓ 25.2% CAGR
Latest reported year was 10.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 35%✓ 37.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 2.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 93.7x✗ 160.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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 · 3 neutral · 5 weak

Market Cap

₹310 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

160.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.20x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.15

Profitable

Profitable on a per-share basis

ROE

2.6%

Weak

Weak capital efficiency

ROCE

1.4%

Weak

Low return on total capital employed

Debt/Equity

1.78x

High

High leverage

Revenue Growth (YoY)

10.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

15.8%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹24.04

Operating Margin

71.9%

Good

Healthy core-business profitability

Net Margin

12.2%

Good

Strong bottom-line conversion

Current Ratio

44.93

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.37

Defensive

Steadier than the market

52W Range Position

54%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

26.9 / 28.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

20.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹17 Cr	₹31 Cr	₹25 Cr	₹33 Cr	+25.2%
EBITDA	₹6 Cr	₹12 Cr	₹10 Cr	₹12 Cr	+26.3%
EBITDA Margin	36.2%	38.4%	37.8%	37.2%	—
PAT (Net Profit)	₹2 Cr	₹10 Cr	₹2 Cr	₹2 Cr	-9.0%
EPS	₹0.21	₹0.79	₹0.18	₹0.15	-10.7%
ROE	6.5%	17.5%	3.2%	2.6%	—
ROCE	2.3%	6.0%	2.4%	1.4%	—
Total Debt	₹122 Cr	₹170 Cr	₹134 Cr	₹134 Cr	+3.1%
Free Cash Flow	-₹96 Cr	-₹60 Cr	₹18 Cr	-₹5 Cr	—

🟢 Revenue has grown at 25.2% a year over 3 years.

🟢 EBITDA has grown at 26.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 37.2% over 3 years.

🔴 PAT (Net Profit) has shrunk at 9.0% a year over 3 years.

🔴 EPS has shrunk at 10.7% a year over 3 years.

🔴 ROE has fallen from 6.5% to 2.6% over 3 years (-3.9 pts).

🟡 ROCE has held roughly flat at 1.4% over 3 years.

🔴 Total Debt has grown at 3.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹215 Cr

Total Liabilities

₹142 Cr

Total Debt

₹134 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹5 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.1%

Corporate Actions

Ex-Dividend Date

19 Sept 2018

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

Sindhu Trade Links gets in-principle nod for ₹897 crore share swap deal

scanx.trade, 14 Oct

Capital Trade Links Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 07 Oct

Share Market News: THIS company in focus after it shares details of two major deals, check details here

India.com, 25 May

Small-cap stock under ₹50 Sindhu Trade Links to be in focus on Monday. Check Details

Livemint, 20 Jun

Capital Trade Links acquires majority stake in Rhythms Industries

scanx.trade, 01 Oct

Sindhu Trade Links Share Price Forecast to 2030

Univest, 29 Jul

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.
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

🟢Business QualityStrong14.2/20

🟢Financial HealthStrong17/20

🔴GrowthWeak8.9/20

🟡ProfitabilityModerate6.9/15

🔴ValuationDemanding4.9/15

🔴RiskHigh4/10

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.

This thesis breaks if

✓Revenue growth stays above 19% a year25.2% CAGR
✓EBITDA margin holds above 35%37.2%
✗Return on equity stays above 8%2.6%
✗Valuation vs its own median of 93.7x160.3x today