Fino Payments Bank Limited

Financial Services — Banks - Regional · NSE

₹135.10+₹2.35 (+1.77%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Fino Payments Bank Limited provides financial solutions and services in India.

IndustryBanks - Regional

SectorFinancial Services

Employees732

Annual revenue₹695 Cr

How does it make money?

Turns over ₹695 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit. Each of its 732 employees supports ₹94.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹94.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. 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 ROE13.8%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 21.2% and earnings to grow about 25.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.2%

Est. earnings growth+25.3%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +55% while net margin moved -48% 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+55%

Margin effect-48%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.5% is weak
✗ ROE has fallen by 5.3 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

31/ 100

Expensive

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

54.5x

3Y Median

27.4x

40 monthly readings · mean 28.2x · range 10.7x–46.0x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 99% above its 3y median of 27.4x. 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 221% above the peer median of 17.0x.

vs. its own history

Expensive

27.4x median over 40 months · +99%

vs. sector peers

Expensive

17.0x median of 4 peers · +221%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 11.8% to 6.5% — each rupee of shareholder capital earns less than it did.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

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?

The price already assumes success
The stock trades 99% 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 11.8% to 6.5%. 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 12% a year✓ 15.8% CAGR
Latest reported year was -36.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 8%✗ 6.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 27.4x✗ 54.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

2 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹1,124 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

54.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.48

Profitable

Profitable on a per-share basis

ROE

6.5%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

1.91x

High

High leverage

Revenue Growth (YoY)

-36.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-43.3%

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

-₹449 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

6.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

-5.1%

Weak

Thin margins leave little room for error

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

132.5 / 140.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹447 Cr	₹556 Cr	₹678 Cr	₹695 Cr	+15.8%
PAT (Net Profit)	₹65 Cr	₹86 Cr	₹93 Cr	₹52 Cr	-6.9%
EPS	₹7.82	₹10.36	₹11.08	₹6.29	-7.0%
ROE	11.8%	13.4%	12.4%	6.5%	—
Total Debt	₹434 Cr	₹713 Cr	₹839 Cr	₹1,535 Cr	+52.4%
Free Cash Flow	-₹114 Cr	-₹47 Cr	-₹88 Cr	-₹449 Cr	—

🟢 Revenue has grown at 15.8% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 6.9% a year over 3 years.

🔴 EPS has shrunk at 7.0% a year over 3 years.

🔴 ROE has fallen from 11.8% to 6.5% over 3 years (-5.3 pts).

🔴 Total Debt has grown at 52.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,312 Cr

Total Liabilities

₹4,507 Cr

Cash & Equivalents

₹1,351 Cr

Operating Cash Flow

-₹307 Cr

Capex

-₹143 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.6%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹390

+188.7% vs CMP

Target Range

₹390 – ₹390

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

2 mixed1 negative3 general

Fino Payments Bank seeks ratification for Rishi Gupta as MD & CEO

scanx.trade, 18 Oct

What Fino Payments Bank Investors Missed Before A 60% Fall

Simply Wall Street, 16 Oct

Fino Payments Bank share price rallies 17% after Q2 business update

Business Standard, 08 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Fino Payments Bank shares rally 17% as average total deposits rise 13% YoY to ₹2,794 crore in Q2; check business updates

Upstox, 08 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Fino Payments Bank shares hit 20% upper circuit after June business update

Livemint, 13 Jul

Fino Payments Bank Share Price Falls 16% To 52-Week Low Amid Probe Reports | Stock Market Today

Samco, 16 MarRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Watch Items

Revenue growth is negative (-36.1%) 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

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

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.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 27.4x · see Key things to watch ↑