Econo Trade (India) Limited

Financial Services — Credit Services · BSE

₹5.90−₹0.04 (−0.67%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Econo Trade (India) Limited, a non-banking financial company, invests in shares and securities in India. It also offers personal and auto loans; and loans repayable on demand to companies, firms, and other parties.

IndustryCredit Services

SectorFinancial Services

Employees5

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹41 reaches shareholders as profit, with ₹59 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹1.07 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.07 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.

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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +37% while net margin moved -15% 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+37%

Margin effect-15%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 11.0% is steady
✗ Profit CAGR of only 5.1%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

84/ 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

5.0x

3Y Median

6.5x

40 monthly readings · mean 6.5x · range 4.7x–10.2x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 3y median of 6.5x. 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 71% below the peer median of 17.0x.

vs. its own history

Cheap

6.5x median over 40 months · -24%

vs. sector peers

Cheap

17.0x median of 4 peers · -71%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.7x

PEG

0.97

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.5 points, from 64.8% to 59.3%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 24% 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 71% 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?

Margins are being competed away
EBITDA margin has fallen from 64.8% to 59.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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✓ 11.0% CAGR
Latest reported year was 14.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 57%✓ 59.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 4.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 6.5x✓ 5.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.0x

Cheap

Cheap against the generic band

P/B Ratio

0.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.19

Profitable

Profitable on a per-share basis

ROE

4.5%

Weak

Weak capital efficiency

ROCE

4.5%

Weak

Low return on total capital employed

Debt/Equity

0.41x

Low

Conservative leverage

Revenue Growth (YoY)

14.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

6.9%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

76.1%

Good

Healthy core-business profitability

Net Margin

55.6%

Good

Strong bottom-line conversion

Current Ratio

1.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6.2 / 6.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹7 Cr	₹6 Cr	₹5 Cr	+11.0%
EBITDA	₹3 Cr	₹3 Cr	₹4 Cr	₹3 Cr	+7.8%
EBITDA Margin	64.8%	51.6%	61.2%	59.3%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹2 Cr	₹2 Cr	+5.1%
EPS	₹1	₹1.35	₹1.21	₹1.17	+5.4%
ROE	4.6%	5.8%	4.9%	4.5%	—
ROCE	4.2%	5.2%	4.9%	4.5%	—
Total Debt	₹23 Cr	₹29 Cr	₹24 Cr	₹20 Cr	-5.6%
Free Cash Flow	-₹18 Cr	-₹6 Cr	₹6 Cr	₹4 Cr	—

🟢 Revenue has grown at 11.0% a year over 3 years.

🟢 EBITDA has grown at 7.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 64.8% to 59.3% over 3 years (-5.5 pts).

🟢 PAT (Net Profit) has grown at 5.1% a year over 3 years.

🟢 EPS has grown at 5.4% a year over 3 years.

🟡 ROE has held roughly flat at 4.5% over 3 years.

🟡 ROCE has held roughly flat at 4.5% over 3 years.

🟢 Total Debt has shrunk at 5.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹18 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹68 Cr

Total Liabilities

₹20 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.5%

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

1 mixed5 general

Econo Trade India Ltd Falls to 52-Week Low of Rs 5.14 as Sell-Off Deepens

MarketsMojo, 16 Oct

52 Week Low Shares BSE | 52 Week Low Today | Shares Trading 52 Week Low BSE

Livemint, 16 Oct

Econo Trade closes trading window ahead of Q2FY27 results

scanx.trade, 26 SeptResults

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

Econo Trade (India) Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Econo Trade shareholders approve ₹90 crore related-party loans for FY27

scanx.trade, 29 Sept

NATIONAL STOCK EXCHANGE OF INDIA LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 26 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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability · Risk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 4 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑