Galada Finance Limited

Financial Services — Credit Services · BSE

₹31.45₹0.00 (0.00%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, 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 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Galada Finance Limited, a non-banking financial company, engages in the lending business in India. The company provides new vehicle loans, used vehicle loans, and other asset financing services, as well as insurance solutions. It serves retail, SME, and commercial customers.

IndustryCredit Services

SectorFinancial Services

Employees5

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹51.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹51.9 lakh

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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +187% while net margin moved +540% 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+187%

Margin effect+540%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.18 — 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

84/ 100

Excellent

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

Valuation

67/ 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

18.9x

3Y Median

36.1x

40 monthly readings · mean 73.2x · range 14.9x–218.6x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 48% below its 3y median of 36.1x. 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 is priced broadly in line with the peer median of 17.0x.

vs. its own history

Cheap

36.1x median over 40 months · -48%

vs. sector peers

Fair

17.0x median of 4 peers · +11%

vs. generic bands

Fair

15x–35x

EV/EBITDA

21.1x

PEG

0.12

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 23.7% to 35.5% over 3 years.
Return on equity is rising
ROE has improved from 0.5% to 7.1%.
Return on capital is rising
ROCE has improved from 1.7% to 10.2%.
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 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 4.1x to 2.2x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 23.7% to 35.5%. 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 48% 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.
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 32% a year✓ 42.1% CAGR
Latest reported year was 58.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 34%✓ 35.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 7.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 2.2x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 36.1x✓ 18.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹9 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.66

Profitable

Profitable on a per-share basis

ROE

7.1%

Weak

Weak capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.55x

High

High leverage

Revenue Growth (YoY)

58.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

146.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

27.1%

Good

Healthy core-business profitability

Net Margin

25.9%

Good

Strong bottom-line conversion

Current Ratio

1.05

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

30.4 / 33.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

60.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹2 Cr	₹3 Cr	+42.1%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+62.8%
EBITDA Margin	23.7%	30.3%	32.0%	35.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+164.0%
EPS	₹0.08	₹1.13	₹0.83	₹1.47	+163.9%
ROE	0.5%	6.1%	4.3%	7.1%	—
ROCE	1.7%	6.6%	4.5%	10.2%	—
Total Debt	₹2 Cr	₹4 Cr	₹5 Cr	₹10 Cr	+86.4%
Free Cash Flow	₹1 Cr	-₹3 Cr	-₹2 Cr	-₹5 Cr	—

🟢 Revenue has grown at 42.1% a year over 3 years.

🟢 EBITDA has grown at 62.8% a year over 3 years.

🟢 EBITDA Margin has risen from 23.7% to 35.5% over 3 years (+11.9 pts).

🟢 PAT (Net Profit) has grown at 164.0% a year over 3 years.

🟢 EPS has grown at 163.9% a year over 3 years.

🟢 ROE has risen from 0.5% to 7.1% over 3 years (+6.6 pts).

🟢 ROCE has risen from 1.7% to 10.2% over 3 years (+8.5 pts).

🔴 Total Debt has grown at 86.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.4%

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

6 general

Compare with BOM.OXYGEN

Equitymaster, 17 Oct

Galada Finance Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Galada Finance shareholders approve all AGM resolutions with 99.99% support

scanx.trade, 28 Sept

Galada Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Galada Power & Telecommunications Ltd. Share Price Live Today

CNBC TV18, 04 Jan

Galada Finance appoints Abhinav Surendra Varma as interim CFO

scanx.trade, 16 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 · Growth · Profitability · 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.

2 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑