Enbee Trade and Finance Limited

Financial Services — Credit Services · BSE

₹0.25+₹0.01 (+4.17%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Enbee Trade and Finance Limited, a non-banking financial company, provides financing services to small and medium business enterprises, and individuals in India. It also offers loans, such as two-wheeler, business, and personal loans.

IndustryCredit Services

SectorFinancial Services

Employees17

Annual revenue₹31 Cr

How does it make money?

Turns over ₹31 Cr a year. Of every ₹100 of sales, about ₹41 reaches shareholders as profit, with ₹56 left at the operating level before interest, tax and depreciation. Each of its 17 employees supports ₹1.80 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin56.4%

Net margin40.9%

Revenue / employee₹1.80 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.

ROCE18.1%

ROE13.7%

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 +529% while net margin moved +1321% 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+529%

Margin effect+1321%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.26 — historically steadier than the index
✗ 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

81/ 100

Excellent

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

Valuation

87/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

1.0x

3Y Median

10.8x

40 monthly readings · mean 16.0x · range 1.1x–56.6x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 90% below its 3y median of 10.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 94% below the peer median of 17.0x.

vs. its own history

Cheap

10.8x median over 40 months · -90%

vs. sector peers

Cheap

17.0x median of 4 peers · -94%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

1.0x

P/B

0.15x

EV/EBITDA

4.1x

PEG

0.00

Dividend Yield

8.00%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 5.4% to 56.4% over 3 years.
Return on equity is rising
ROE has improved from 1.3% to 13.7%.
Return on capital is rising
ROCE has improved from 0.6% to 18.1%.
Valuation below its historical average
At 1.0x the stock trades 90% below its own median of 10.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.31 — near-term obligations exceed near-term assets.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1212% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.4% to 56.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 90% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 94% 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?

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 63% a year✓ 84.6% CAGR
Latest reported year was 33.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 54%✓ 56.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 12%✓ 13.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 10.8x✓ 1.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

8 good · 2 neutral · 1 weak

Market Cap

₹17 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.0x

Cheap

Cheap against the generic band

P/B Ratio

0.15x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.24

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.59x

Low

Conservative leverage

Revenue Growth (YoY)

33.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

50.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

8.00%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹0.25

Operating Margin

79.9%

Good

Healthy core-business profitability

Net Margin

57.5%

Good

Strong bottom-line conversion

Current Ratio

0.31

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.26

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.3 / 0.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹10 Cr	₹20 Cr	₹31 Cr	+84.6%
EBITDA	₹0 Cr	₹3 Cr	₹9 Cr	₹17 Cr	+303.6%
EBITDA Margin	5.4%	28.1%	43.8%	56.4%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	₹5 Cr	₹13 Cr	+347.2%
EPS	₹0.03	₹0.08	₹0.09	₹0.22	+90.2%
ROE	1.3%	5.0%	6.2%	13.7%	—
ROCE	0.6%	3.4%	6.1%	18.1%	—
Total Debt	₹25 Cr	₹31 Cr	₹51 Cr	₹54 Cr	+29.3%
Free Cash Flow	-₹0 Cr	-₹18 Cr	-₹63 Cr	-₹2 Cr	—

🟢 Revenue has grown at 84.6% a year over 3 years.

🟢 EBITDA has grown at 303.6% a year over 3 years.

🟢 EBITDA Margin has risen from 5.4% to 56.4% over 3 years (+51.0 pts).

🟢 PAT (Net Profit) has grown at 347.2% a year over 3 years.

🟢 EPS has grown at 90.2% a year over 3 years.

🟢 ROE has risen from 1.3% to 13.7% over 3 years (+12.4 pts).

🟢 ROCE has risen from 0.6% to 18.1% over 3 years (+17.5 pts).

🔴 Total Debt has grown at 29.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹159 Cr

Total Liabilities

₹67 Cr

Total Debt

₹54 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

19.1%

Corporate Actions

Dividend Rate

₹0.02

Ex-Dividend Date

26 Jun 2025

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

2 positive4 general

Enbee Trade & Finance Ltd. Peer Comparison – Compare with Others

Value Research, 09 Oct

Enbee Trade promoter Gala sells 46.35 lakh shares for ₹11.43 lakh

scanx.trade, 25 Sept

Enbee Trade & Finance standalone net profit rises 63.97% in the June 2026 quarter

Business Standard, 14 AugResults

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

Enbee Trade & Finance Dividend, Business Overview & Risk Factors | Kalkine

Kalkine India, 01 JulCapital return

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

Enbee Trade & Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Enbee Trade & Finance - 14 penny stocks plunge up to 70% in 3 months. Are you affected?

The Economic Times, 26 Jul

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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 QualityStrong17.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong11.4/15

🟢ValuationAttractive12.8/15

🔴RiskHigh4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 63% a year84.6% CAGR
✓EBITDA margin holds above 54%56.4%
✓Return on equity stays above 12%13.7%
✓Valuation vs its own median of 10.8x1.0x today