DB (International) Stock Brokers Limited

Financial Services — Capital Markets · NSE

₹31.25+₹0.22 (+0.71%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

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, 6:09 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 DB (International) Stock Brokers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

DB (International) Stock Brokers Limited provides stock broking and depository participant services of CDSL in India.

IndustryCapital Markets

SectorFinancial Services

Employees74

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹-25 left at the operating level before interest, tax and depreciation. Each of its 74 employees supports ₹17.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-25.3%

Net margin24.6%

Revenue / employee₹17.1 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.

ROCE6.2%

ROE4.1%

Peer median ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +35% while net margin moved -64% 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+35%

Margin effect-64%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 10.6% is steady
✗ Profit has declined at 21.2% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 13.8% in the latest year

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

52/ 100

Fair

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

36.8x

3Y Median

18.1x

40 monthly readings · mean 19.6x · range 10.6x–35.7x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 103% above its 3y median of 18.1x. 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 37% below the peer median of 58.4x.

vs. its own history

Expensive

18.1x median over 40 months · +103%

vs. sector peers

Cheap

58.4x median of 3 peers · -37%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

36.8x

P/B

1.42x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -60.8% to -25.3% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 11.1% to 4.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.2% to 6.2% — often a sign of competition or overexpansion.
Valuation above its historical average
At 36.8x the stock trades 103% above its own median of 18.1x.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 51% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -60.8% to -25.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 37% 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?

The price already assumes success
The stock trades 103% 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 11.1% to 4.1%. 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.
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 8% a year✓ 10.6% CAGR
Latest reported year was 50.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -27%✓ -25.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 4.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 18.1x✗ 36.8x 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

₹109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

36.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.42x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.85

Profitable

Profitable on a per-share basis

ROE

4.1%

Weak

Weak capital efficiency

ROCE

6.2%

Weak

Low return on total capital employed

Debt/Equity

3.01x

High

High leverage

Revenue Growth (YoY)

50.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-13.8%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹31.25

Operating Margin

10.8%

Average

Average margins

Net Margin

10.0%

Average

Average bottom-line conversion

Current Ratio

2.61

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.02

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

31.2 / 30.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹13 Cr	₹16 Cr	₹13 Cr	+10.6%
EBITDA	-₹6 Cr	-₹13 Cr	-₹9 Cr	-₹3 Cr	—
EBITDA Margin	-60.8%	-97.6%	-56.0%	-25.3%	—
PAT (Net Profit)	₹6 Cr	₹9 Cr	₹6 Cr	₹3 Cr	-21.2%
EPS	₹1.82	₹2.59	₹1.65	₹0.89	-21.2%
ROE	11.1%	13.6%	8.0%	4.1%	—
ROCE	15.2%	19.2%	11.2%	6.2%	—
Total Debt	₹7 Cr	₹4 Cr	₹3 Cr	₹2 Cr	-32.6%
Free Cash Flow	₹1 Cr	-₹7 Cr	-₹1 Cr	₹3 Cr	+27.5%

🟢 Revenue has grown at 10.6% a year over 3 years.

🟢 EBITDA Margin has risen from -60.8% to -25.3% over 3 years (+35.5 pts).

🔴 PAT (Net Profit) has shrunk at 21.2% a year over 3 years.

🔴 EPS has shrunk at 21.2% a year over 3 years.

🔴 ROE has fallen from 11.1% to 4.1% over 3 years (-7.0 pts).

🔴 ROCE has fallen from 15.2% to 6.2% over 3 years (-8.9 pts).

🟢 Total Debt has shrunk at 32.6% a year over 3 years.

🟢 Free Cash Flow has grown at 27.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹116 Cr

Total Liabilities

₹40 Cr

Total Debt

₹2 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.7%

Corporate Actions

Ex-Dividend Date

08 Aug 2012

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

2 mixed1 negative3 general

DB International Stock Brokers sets Oct 21 meeting for Q2 results, retail transfer

scanx.trade, 15 OctResults

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

DB (International) Stock Brokers Upper Circuit Today

Univest, 06 Oct

DB (International) Stock Brokers Q2 2026 Earnings: Revenue Slips 18.95% YoY as EPS Comes in at ₹0.89 - Growth Acceleration Report

https://www.siam.in/, 11 SeptResults

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

DB (International) Stock Brokers consolidated net profit declines 14.85% in the June 2026 quarter

Business Standard, 10 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

DB (International) Stock Brokers Ltd. Share Price Live Today

CNBC TV18, 03 Jan

DB (Int) Stock Consolidated June 2026 Net Sales at Rs 10.33 crore, up 48.52% Y-o-Y

Moneycontrol.com, 20 Aug

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 QualityWeak8.5/20

🟢Financial HealthStrong17/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak5.8/15

🟡ValuationFair7.5/15

🟡RiskModerate5.2/10

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 8% a year10.6% CAGR
✓EBITDA margin holds above -27%-25.3%
✗Return on equity stays above 8%4.1%
✗Valuation vs its own median of 18.1x36.8x today