Cubical Financial Services Limited

Financial Services — Asset Management · BSE

₹5.24+₹0.08 (+1.55%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by 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. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Cubical Financial Services Limited operates as an investment company. It engages in investment activities as per the company's in-house analysis in financial markets, stocks, properties, etc.

IndustryAsset Management

SectorFinancial Services

Employees6

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹21.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹21.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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 +12% while net margin moved -154% 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+12%

Margin effect-154%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 87.3x is demanding — it needs sustained high growth to justify
✗ P/E is 146% above its own historical median of 35.5x — expensive by its own standards

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

26/ 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

87.3x

2Y Median

35.5x

28 monthly readings · mean 55.6x · range 11.5x–219.3x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 146% above its 2y median of 35.5x. 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 414% above the peer median of 17.0x.

vs. its own history

Expensive

35.5x median over 28 months · +146%

vs. sector peers

Expensive

17.0x median of 4 peers · +414%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

233.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -16.9% to 24.7% over 3 years.
Return on equity is rising
ROE has improved from -2.1% to 1.1%.
Return on capital is rising
ROCE has improved from -1.4% to 2.1%.

🔴 What Needs Attention0

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

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -16.9% to 24.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 146% 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.
Growth barely outpaces inflation
Revenue compounding at 4.0% 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.
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 23%✓ 24.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 1.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 4% a year✗ 4.0% CAGR
Latest reported year was 98.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 35.5x✗ 87.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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)

87.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.37x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.06

Profitable

Profitable on a per-share basis

ROE

1.1%

Weak

Weak capital efficiency

ROCE

2.1%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

98.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

300.0%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

56.4%

Good

Healthy core-business profitability

Net Margin

21.5%

Good

Strong bottom-line conversion

Current Ratio

154.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.79

Defensive

Steadier than the market

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.9 / 5.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

10.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹3 Cr	₹2 Cr	₹1 Cr	+4.0%
EBITDA	-₹0 Cr	₹1 Cr	₹1 Cr	₹0 Cr	—
EBITDA Margin	-16.9%	47.1%	28.0%	24.7%	—
PAT (Net Profit)	-₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-0.04	₹0.18	₹0.06	₹0.03	—
ROE	-2.1%	7.9%	2.5%	1.1%	—
ROCE	-1.4%	8.7%	4.5%	2.1%	—
Free Cash Flow	-₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	—

🟢 Revenue has grown at 4.0% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EBITDA Margin has risen from -16.9% to 24.7% over 3 years (+41.6 pts).

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

🟢 EPS has turned positive, from ₹-0.04 to ₹0.03.

🟢 ROE has risen from -2.1% to 1.1% over 3 years (+3.2 pts).

🟢 ROCE has risen from -1.4% to 2.1% over 3 years (+3.5 pts).

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.3%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive1 mixed4 general

Cubical Financial Services open offer attracts negligible share acceptance

scanx.trade, 09 Oct

Compare CUBICAL FIN. with

Equitymaster, 15 Oct

Cubical Financial Services standalone net profit rises 228.57% in the June 2026 quarter

Business Standard, 11 AugResults

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

Cubical open offer draws just 1,321 shares as acquirers already hold 68.94%

Dealroom, 09 Oct

Amit Kumar Saraogi and Manoj Agrawal completed the acquisition of 0.002% stake in Cubical Financial Services Limited for INR 0.003 million.

www.marketscreener.com, 29 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Cubical Financial Services open offer tendering begins September 17

scanx.trade, 10 Sept

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

StrongBusiness Quality · Financial Health · Profitability

WeakGrowth · Valuation · Risk

Points for each in the Score ↑

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 of 4 tripwires tripped — Return on equity stays above 8%; Revenue growth stays above 4% a year; Valuation vs its own median of 35.5x · see Key things to watch ↑