Gretex Corporate Services Limited

Financial Services — Capital Markets · NSE

₹740.10+₹4.80 (+0.65%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gretex Corporate Services Limited, a merchant banking company, provides financial and consultancy services in the areas of capital markets advisory, corporate finance, corporate restructuring, debt syndication, and compliance advisory in India.

IndustryCapital Markets

SectorFinancial Services

Employees59

Annual revenue₹66 Cr

How does it make money?

Turns over ₹66 Cr a year. Of every ₹100 of sales, about ₹35 reaches shareholders as profit, with ₹-75 left at the operating level before interest, tax and depreciation. Each of its 59 employees supports ₹1.12 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.12 Cr

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.

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 ROE13.7%

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 +425% while net margin moved -79% 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+425%

Margin effect-79%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.74 — 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
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

52/ 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

47.9x

1.3Y Median

606.9x

15 monthly readings · mean 478.2x · range 56.7x–913.2x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 92% below its 1.3y median of 606.9x. 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 18% below the peer median of 58.4x.

vs. its own history

Cheap

606.9x median over 15 months · -92%

vs. sector peers

Fair

58.4x median of 3 peers · -18%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

19.06

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 55.5% to 13.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 56.5% to 18.6% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 1647% against revenue growth of 425% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 259.0 points, from 184.4% to -74.6%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 92% 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?

Margins are being competed away
EBITDA margin has fallen from 184.4% to -74.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 55.5% to 13.6%. 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.
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 55% a year✓ 73.8% CAGR
Latest reported year was 68.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -77%✓ -74.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 12%✓ 13.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 606.9x✓ 47.9x 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

4 good · 3 neutral · 4 weak

Market Cap

₹1,738 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

47.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.53x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.44

Profitable

Profitable on a per-share basis

ROE

13.6%

Moderate

Moderate capital efficiency

ROCE

18.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.79x

High

High leverage

Revenue Growth (YoY)

68.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

845.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.09%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹29 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

44.5%

Good

Healthy core-business profitability

Net Margin

18.3%

Good

Strong bottom-line conversion

Current Ratio

6.87

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.74

Defensive

Steadier than the market

52W Range Position

99%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

682.5 / 601.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

92.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹35 Cr	₹39 Cr	₹66 Cr	+73.8%
EBITDA	₹23 Cr	-₹27 Cr	-₹214 Cr	-₹49 Cr	—
EBITDA Margin	184.4%	-77.1%	-552.6%	-74.6%	—
PAT (Net Profit)	₹21 Cr	₹27 Cr	₹1 Cr	₹23 Cr	+2.5%
EPS	₹10.68	₹12.75	₹0.57	₹9.82	-2.8%
ROE	55.5%	25.0%	0.7%	13.6%	—
ROCE	56.5%	30.4%	2.1%	18.6%	—
Total Debt	₹0 Cr	₹4 Cr	₹11 Cr	₹15 Cr	+319.5%
Free Cash Flow	₹9 Cr	-₹40 Cr	-₹35 Cr	-₹29 Cr	—

🟢 Revenue has grown at 73.8% a year over 3 years.

🔴 EBITDA has turned negative, from ₹23 Cr to -₹49 Cr.

🔴 EBITDA Margin has fallen from 184.4% to -74.6% over 3 years (-259.0 pts).

🟢 PAT (Net Profit) has grown at 2.5% a year over 3 years.

🔴 EPS has shrunk at 2.8% a year over 3 years.

🔴 ROE has fallen from 55.5% to 13.6% over 3 years (-41.9 pts).

🔴 ROCE has fallen from 56.5% to 18.6% over 3 years (-37.9 pts).

🔴 Total Debt has grown at 319.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹9 Cr to -₹29 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹244 Cr

Total Liabilities

₹25 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹28 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.8%

Corporate Actions

Dividend Rate

₹0.7

Ex-Dividend Date

17 Jul 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

1 positive5 general

Gretex Corporate Services Ltd. 52 Week High Streak Analysis

Univest, 14 Oct

Gretex Corporate Services Ltd Hits All-Time High of Rs 787.9 as Momentum Builds Across Timeframes

MarketsMojo, 15 Oct

Gretex Corporate Services consolidated net profit rises 1111.69% in the June 2026 quarter

Business Standard, 01 AugResults

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

Gretex Corporate Services (NSE: GCSL) Informs Exchanges of DRHP Filing for Tenty Limited IPO

Kalkine India, 30 Sept

Gretex Corporate Services files DRHP for Tenty Limited IPO on main boards

scanx.trade, 30 Sept

Pilani Investment vs Gretex Corporate vs BF Investment: Which Stock Should You Track

Univest, 14 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability

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

All 4 tripwires holding · see Key things to watch ↑