Geojit Financial Services Limited

Financial Services — Capital Markets · NSE

₹77.50+₹1.64 (+2.16%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Geojit Financial Services Limited, an investment services company, provides broking and financial services in India, Oman, Kuwait, the United Arab Emirates, and Saudi Arabia.

IndustryCapital Markets

SectorFinancial Services

Employees3,768

Annual revenue₹526 Cr

How does it make money?

Turns over ₹526 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 3,768 employees supports ₹14.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin31.0%

Net margin15.3%

Revenue / employee₹14.0 lakh

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.

ROCE8.6%

ROE6.7%

Peer median ROE13.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +49% while net margin moved -44% 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+49%

Margin effect-44%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 14.1% is steady
✗ Profit has declined at 6.1% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of 4.9% is below the longer-term trend — momentum is fading
✗ Profit fell 28.3% in the latest year

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

56/ 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

29.8x

3Y Median

16.4x

40 monthly readings · mean 18.1x · range 8.5x–30.2x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 82% above its 3y median of 16.4x. 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 49% below the peer median of 58.4x.

vs. its own history

Expensive

16.4x median over 40 months · +82%

vs. sector peers

Cheap

58.4x median of 3 peers · -49%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

29.8x

P/B

1.80x

EV/EBITDA

13.1x

PEG

—

Dividend Yield

1.94%

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 44.8% to 31.0% over 3 years.
Return on equity is falling
ROE has dropped from 13.4% to 6.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.3% to 8.6% — often a sign of competition or overexpansion.
Valuation above its historical average
At 29.8x the stock trades 82% above its own median of 16.4x.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 13.7 points, from 44.8% to 31.0%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 49% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 44.8% to 31.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 82% 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 13.4% to 6.7%. 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 11% a year✓ 14.1% CAGR
Latest reported year was 4.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 31.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 6.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 16.4x✗ 29.8x 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

2 good · 6 neutral · 3 weak

Market Cap

₹2,163 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.80x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.6

Profitable

Profitable on a per-share basis

ROE

6.7%

Weak

Weak capital efficiency

ROCE

8.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

9.47x

High

High leverage

Revenue Growth (YoY)

4.9%

Modest

Modest growth

Profit Growth (YoY)

-28.3%

Falling

Profits are shrinking

Dividend Yield

1.94%

Modest

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

Free Cash Flow

₹182 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹77.5

Operating Margin

11.1%

Average

Average margins

Net Margin

10.7%

Good

Strong bottom-line conversion

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

78.0 / 79.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

36.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹354 Cr	₹498 Cr	₹584 Cr	₹526 Cr	+14.1%
EBITDA	₹158 Cr	₹237 Cr	₹286 Cr	₹163 Cr	+1.0%
EBITDA Margin	44.8%	47.5%	49.0%	31.0%	—
PAT (Net Profit)	₹97 Cr	₹145 Cr	₹168 Cr	₹80 Cr	-6.1%
EPS	₹3.66	₹5.45	₹6.17	₹2.88	-7.6%
ROE	13.4%	17.4%	14.5%	6.7%	—
ROCE	15.3%	21.7%	19.7%	8.6%	—
Total Debt	₹114 Cr	₹398 Cr	₹156 Cr	₹123 Cr	+2.4%
Free Cash Flow	₹15 Cr	-₹143 Cr	₹142 Cr	₹182 Cr	+130.1%

🟢 Revenue has grown at 14.1% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.0% a year).

🔴 EBITDA Margin has fallen from 44.8% to 31.0% over 3 years (-13.7 pts).

🔴 PAT (Net Profit) has shrunk at 6.1% a year over 3 years.

🔴 EPS has shrunk at 7.6% a year over 3 years.

🔴 ROE has fallen from 13.4% to 6.7% over 3 years (-6.8 pts).

🔴 ROCE has fallen from 15.3% to 8.6% over 3 years (-6.7 pts).

🔴 Total Debt has grown at 2.4% a year over 3 years.

🟢 Free Cash Flow has grown at 130.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,134 Cr

Total Liabilities

₹839 Cr

Total Debt

₹123 Cr

Cash & Equivalents

₹153 Cr

Operating Cash Flow

₹236 Cr

Capex

-₹54 Cr

Shareholding (proxy)

Institutional Holding

11.4%

Insider Holding

53.5%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

10 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

Buy Tata Consultancy Services; target of Rs 2530: Geojit Financial Services

Moneycontrol.com, 15 Oct

Why It Might Not Make Sense To Buy Geojit Financial Services Limited (NSE:GEOJITFSL) For Its Upcoming Dividend

Simply Wall Street, 06 JulCapital return

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

Geojit Financial Services reshuffles top deck; Jones George to take over as MD

The Economic Times, 30 Sept

INTERVIEW | 'India's economic liberalisation started under V P Singh as FM': CJ George

The New Indian Express, 04 Oct

Pros and Cons of Geojit Financial Services Share 2026

Univest, 11 Aug

Geojit Financial Services (GEOJITFSL.NS) Edges Higher by 1.28%: Key Levels to Watch - Golden Cross

siam.in, 28 Aug

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

🟡Business QualityAdequate12.2/20

🟢Financial HealthStrong17/20

🔴GrowthWeak7.7/20

🟡ProfitabilityModerate6.9/15

🔴ValuationDemanding6.1/15

🟡RiskModerate5.2/10

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

✓Revenue growth stays above 11% a year14.1% CAGR
✓EBITDA margin holds above 29%31.0%
✗Return on equity stays above 8%6.7%
✗Valuation vs its own median of 16.4x29.8x today