Goenka Business & Finance Limited

Financial Services — Capital Markets · BSE

₹12.67−₹0.08 (−0.63%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

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 both sales and profits growing well. Thin profit margins are 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 Goenka Business & Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Goenka Business & Finance Limited operates as a non-banking finance company in India. It offers secured and unsecured loans, and advances. The company also engages in the derivatives business; and invests in, acquires, and holds shares, bonds, fixed deposits, and securities, etc.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹156 Cr

How does it make money?

Turns over ₹156 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation.

EBITDA margin20.6%

Net margin2.9%

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO 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%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

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.

ROCE7.1%

ROE12.8%

Peer median ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -37% while net margin moved +4974% 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+4974%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.00 — 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

Quality vs. Valuation

Company Quality

55/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

3.2x

3Y Median

6.3x

40 monthly readings · mean 22.0x · range 2.8x–79.5x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 49% below its 3y median of 6.3x. 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 95% below the peer median of 58.4x.

vs. its own history

Cheap

6.3x median over 40 months · -49%

vs. sector peers

Cheap

58.4x median of 3 peers · -95%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

3.2x

P/B

0.52x

EV/EBITDA

0.4x

PEG

0.01

Dividend Yield

3.95%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.0% to 20.6% over 3 years.
Return on equity is rising
ROE has improved from 0.5% to 12.8%.
Valuation below its historical average
At 3.2x the stock trades 49% below its own median of 6.3x.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 33.9% to 7.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.0% to 20.6%. 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 49% 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 95% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 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

1EBITDA margin holds above 19%✓ 20.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 11%✓ 12.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.
4Valuation vs its own median of 6.3x✓ 3.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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
✓ 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

7 good · 3 neutral · 1 weak

Market Cap

₹16 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.2x

Cheap

Cheap against the generic band

P/B Ratio

0.52x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.96

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

7.1%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

210.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1113.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.95%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹12.67

Operating Margin

36.7%

Good

Healthy core-business profitability

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

98.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.00

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

13.0 / 11.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹249 Cr	₹86 Cr	₹75 Cr	₹156 Cr	-14.4%
EBITDA	₹10 Cr	₹16 Cr	₹13 Cr	₹32 Cr	+48.0%
EBITDA Margin	4.0%	19.0%	17.9%	20.6%	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	-₹1 Cr	₹5 Cr	+217.0%
EPS	₹0.11	₹1.69	₹-0.45	₹3.54	+218.2%
ROE	0.5%	7.0%	-1.9%	12.8%	—
ROCE	33.9%	7.6%	8.5%	7.1%	—
Free Cash Flow	₹7 Cr	-₹6 Cr	-₹1 Cr	₹9 Cr	+8.5%

🔴 Revenue has shrunk at 14.4% a year over 3 years.

🟢 EBITDA has grown at 48.0% a year over 3 years.

🟢 EBITDA Margin has risen from 4.0% to 20.6% over 3 years (+16.6 pts).

🟢 PAT (Net Profit) has grown at 217.0% a year over 3 years.

🟢 EPS has grown at 218.2% a year over 3 years.

🟢 ROE has risen from 0.5% to 12.8% over 3 years (+12.3 pts).

🔴 ROCE has fallen from 33.9% to 7.1% over 3 years (-26.8 pts).

🟢 Free Cash Flow has grown at 8.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹396 Cr

Total Liabilities

₹360 Cr

Total Debt

—

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹9 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

34.1%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

01 Oct 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

3 positive3 general

Compare with

Equitymaster, 15 Oct

Goenka Business & Finance AGM approves ₹0.50 dividend and new auditor

scanx.trade, 29 SeptCapital return

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

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

Value Research, 31 Aug

R Systems International, Indraprastha Gas Dividend Record Date: Last Day To Buy To Qualify

NDTV Profit, 30 SeptCapital return

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

Goenka Business & Finance faces ₹1 Cr SEBI penalty, 5-year market ban

scanx.trade, 01 Jul

SAIL to Indraprastha Gas: Upcoming dividend stocks, bonus issues, other corporate actions this week; check list

Upstox, 27 SeptCapital return

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

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟡Financial HealthAdequate12.4/20

🟡GrowthModest10.5/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive12.8/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✓EBITDA margin holds above 19%20.6%
✓Return on equity stays above 11%12.8%
✗Interest cover stays above 3x1.3x
✓Valuation vs its own median of 6.3x3.2x today