Fedders Holding Limited

Financial Services — Credit Services · NSE

₹60.80−₹1.67 (−2.67%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 Fedders Holding Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Fedders Holding Limited operates as a corporate and transaction advisory, asset management, and management consultancy company in the real estate and distress debt resolution advisory sectors in India and internationally.

IndustryCredit Services

SectorFinancial Services

Employees2

Annual revenue₹377 Cr

How does it make money?

Turns over ₹377 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹188.58 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.6%

Net margin24.2%

Revenue / employee₹188.58 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.

ROCE12.5%

ROE12.7%

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 +188% while net margin moved +53% 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+188%

Margin effect+53%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.26 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

62/ 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

14.3x

Sector Median

17.0x

median of 4 sector peers

🟢Against its sector it trades 16% below the peer median of 17.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

17.0x median of 4 peers · -16%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.3x

P/B

1.70x

EV/EBITDA

35.7x

PEG

0.22

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 8.7% to 12.7%.
Return on capital is rising
ROCE has improved from 8.1% to 12.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 15.2% to 9.6% over 3 years.
Receivables growing faster than sales
Receivables are up 240% against revenue growth of 188% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 414% against revenue growth of 188% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.6 points, from 15.2% to 9.6%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 475% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 15.2% to 9.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 32% a year✓ 42.3% CAGR
Latest reported year was -11.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 11%✓ 12.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.

Investment Checklist

5 / 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
✗ 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

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹1,225 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.3x

Cheap

Cheap against the generic band

P/B Ratio

1.70x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.26

Profitable

Profitable on a per-share basis

ROE

12.7%

Moderate

Moderate capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

9.22x

High

High leverage

Revenue Growth (YoY)

-11.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-34.4%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹60.8

Operating Margin

0.5%

Weak

Thin margins leave little room for error

Net Margin

25.5%

Good

Strong bottom-line conversion

Current Ratio

6.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.26

Market-like

Moves roughly in line with the market

52W Range Position

59%

Mid-range

Technical Snapshot

RSI (14)

44.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹131 Cr	₹536 Cr	₹440 Cr	₹377 Cr	+42.3%
EBITDA	₹20 Cr	₹71 Cr	₹42 Cr	₹36 Cr	+22.0%
EBITDA Margin	15.2%	13.3%	9.4%	9.6%	—
PAT (Net Profit)	₹21 Cr	₹94 Cr	₹38 Cr	₹91 Cr	+64.0%
EPS	₹5.92	₹10.23	₹2.54	₹4.54	-8.5%
ROE	8.7%	22.8%	6.0%	12.7%	—
ROCE	8.1%	22.3%	6.1%	12.5%	—
Total Debt	₹34 Cr	₹58 Cr	₹80 Cr	₹66 Cr	+25.3%
Free Cash Flow	-₹24 Cr	-₹117 Cr	-₹283 Cr	₹7 Cr	—

🟢 Revenue has grown at 42.3% a year over 3 years.

🟢 EBITDA has grown at 22.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.2% to 9.6% over 3 years (-5.6 pts).

🟢 PAT (Net Profit) has grown at 64.0% a year over 3 years.

🔴 EPS has shrunk at 8.5% a year over 3 years.

🟢 ROE has risen from 8.7% to 12.7% over 3 years (+3.9 pts).

🟢 ROCE has risen from 8.1% to 12.5% over 3 years (+4.4 pts).

🔴 Total Debt has grown at 25.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹24 Cr to ₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹835 Cr

Total Liabilities

₹115 Cr

Total Debt

₹66 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹64 Cr

Capex

-₹57 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.6%

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 positive5 general

Fedders Holding shares hit a 52-week high - What is driving the stock rally? Should you buy?

Livemint, 22 Sept

Fedders Holdings Limited | Stock Share Price Live

MarketSmith India, 21 Jul

Fedders Holding schedules 35th AGM for Sept 30 with board reshuffle

scanx.trade, 07 Sept

Fedders Holding Q4 Net Profit Surges 456% to ₹36.7 Cr as Revenue Reaches ₹130 Cr

Sahi, 29 MayResults

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

Fedders Holding - Concurrent Gainers: 10 smallcap stocks that gain for 5 days in a row

The Economic Times, 19 Sept

Fedders Holding Ltd Locks at Upper Circuit With 20% Gain — Buyers Queue, Sellers Absent

MarketsMojo, 21 Sept

Watch Items

Revenue growth is negative (-11.0%) on the latest reported period — check if this is one-off or a trend.
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 QualityStrong13.8/20

🟢Financial HealthStrong17/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong11.4/15

🟢ValuationAttractive11/15

🔴RiskHigh2.6/10

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

This thesis breaks if

✓Revenue growth stays above 32% a year42.3% CAGR
✓EBITDA margin holds above 8%9.6%
✓Return on equity stays above 11%12.7%