E Factor Experiences Limited

Sector n/a · NSE

₹212.00−₹2.90 (−1.35%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

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

How does it make money?

Turns over ₹191 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 29.8%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +61% while net margin moved +68% 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+61%

Margin effect+68%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

60/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

9.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 10.0% to 15.5% over 3 years.
High return on capital employed
ROCE of 29.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 63.0% to 21.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 69.9% to 29.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 223% over 3 years, from ₹9 Cr to ₹29 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 209% against revenue up 61% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 29.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 10.0% to 15.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 209% against revenue up 61%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 63.0% to 21.8%. 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.1% CAGR
Latest reported year was 11.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 27%✓ 29.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹278 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

21.8%

Strong

Strong capital efficiency

ROCE

29.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.33x

Low

Conservative leverage

Revenue Growth (YoY)

11.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-2.5%

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

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

25.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

10.3%

Good

Strong bottom-line conversion

Current Ratio

2.08

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

181.7 / 183.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

64.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹119 Cr	₹149 Cr	₹172 Cr	₹191 Cr	+17.1%
EBITDA	₹12 Cr	₹23 Cr	₹28 Cr	₹30 Cr	+35.8%
EBITDA Margin	10.0%	15.4%	16.2%	15.5%	—
PAT (Net Profit)	₹7 Cr	₹15 Cr	₹20 Cr	₹20 Cr	+39.3%
EPS	₹5.56	₹13.63	₹15.42	—	—
ROE	63.0%	30.5%	28.5%	21.8%	—
ROCE	69.9%	41.8%	37.6%	29.8%	—
Total Debt	₹9 Cr	₹4 Cr	₹15 Cr	₹29 Cr	+47.8%
Free Cash Flow	-₹1 Cr	-₹1 Cr	-₹18 Cr	-₹10 Cr	—

🟢 Revenue has grown at 17.1% a year over 3 years.

🟢 EBITDA has grown at 35.8% a year over 3 years.

🟢 EBITDA Margin has risen from 10.0% to 15.5% over 3 years (+5.6 pts).

🟢 PAT (Net Profit) has grown at 39.3% a year over 3 years.

🔴 ROE has fallen from 63.0% to 21.8% over 3 years (-41.2 pts).

🔴 ROCE has fallen from 69.9% to 29.8% over 3 years (-40.1 pts).

🔴 Total Debt has grown at 47.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹161 Cr

Total Liabilities

₹69 Cr

Cash & Equivalents

₹21 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹10 Cr

Recent News

1 positive5 general

2,650,000 Equity Shares of E Factor Experiences Limited are subject to a Lock-Up Agreement Ending on 13-OCT-2026.

www.marketscreener.com, 13 Oct

E Factor Experiences Ltd Dividend History, Yield & Record Date

INDmoney, 01 OctCapital return

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

E Factor Experiences Ltd Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 03 Sept

E Factor Experiences Limited Reports FY26 Consolidated Revenue of INR 191.44 Crore, Up 11.6%

Business Standard, 30 May

E-Factor Experiences to attend Samruddhi 2026 virtual meet

scanx.trade, 11 Jun

ROBOKIDZ EDUVENTURES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 14 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑