GDL Leasing and Finance Limited

Financial Services — Mortgage Finance · BSE

₹82.41₹0.00 (0.00%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

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

What does this company do?

GDL Leasing and Finance Limited operates as a non-banking finance company in India. It engages in the provision of loans and advances; and investment activities. The company was incorporated in 1994 and is based in New Delhi, India.

IndustryMortgage Finance

SectorFinancial Services

Employees9

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹40.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹40.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +966% while net margin moved +740% 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+966%

Margin effect+740%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.66 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

49/ 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

68.7x

3Y Median

92.1x

40 monthly readings · mean 127.2x · range 14.6x–277.7x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 3y median of 92.1x. 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 trades 304% above the peer median of 17.0x.

vs. its own history

Cheap

92.1x median over 40 months · -25%

vs. sector peers

Expensive

17.0x median of 4 peers · +304%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

36.8x

PEG

0.20

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.3% to 31.4% over 3 years.
Return on equity is rising
ROE has improved from 0.3% to 11.7%.
Return on capital is rising
ROCE has improved from 0.4% to 16.2%.
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

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 66% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.3% to 31.4%. 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 25% 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?

A premium to the sector to defend
It trades 304% above the peer median. That premium needs a reason that persists, or it closes.
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 90% a year✓ 120.1% CAGR
Latest reported year was 26.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 31.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 10%✓ 11.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 92.1x✓ 68.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

₹41 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

68.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.04x

Rich

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

EPS (TTM)

₹1.2

Profitable

Profitable on a per-share basis

ROE

11.7%

Moderate

Moderate capital efficiency

ROCE

16.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

26.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-58.5%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

21.4%

Good

Healthy core-business profitability

Net Margin

16.7%

Good

Strong bottom-line conversion

Current Ratio

5.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.66

High swing

Swings more than the market in both directions

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

70.7 / 67.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

86.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹1 Cr	₹4 Cr	+120.1%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+258.5%
EBITDA Margin	7.3%	32.6%	49.5%	31.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+347.4%
EPS	₹0.03	₹0.34	₹0.76	₹1.59	+275.6%
ROE	0.3%	3.1%	6.4%	11.7%	—
ROCE	0.4%	4.2%	9.5%	16.2%	—
Total Debt	—	₹0 Cr	₹1 Cr	₹1 Cr	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹1 Cr	-₹2 Cr	—

🟢 Revenue has grown at 120.1% a year over 3 years.

🟢 EBITDA has grown at 258.5% a year over 3 years.

🟢 EBITDA Margin has risen from 7.3% to 31.4% over 3 years (+24.1 pts).

🟢 PAT (Net Profit) has grown at 347.4% a year over 3 years.

🟢 EPS has grown at 275.6% a year over 3 years.

🟢 ROE has risen from 0.3% to 11.7% over 3 years (+11.5 pts).

🟢 ROCE has risen from 0.4% to 16.2% over 3 years (+15.8 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.5%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

6 general

GDL Leasing & Finance Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

GDL Leasing shareholders approve preferential issue of 30 lakh warrants

scanx.trade, 30 Sept

Compare with

Equitymaster, 30 Sept

GDL Leasing & Finance Ltd. Peer Comparison – Compare with Others

Value Research, 01 Sept

GDL Leasing sets Sept 30 AGM to approve ₹4.2 crore warrant issue

scanx.trade, 30 Sept

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

Value Research, 01 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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

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.

All 4 tripwires holding · see Key things to watch ↑