G.K. Consultants Limited

Financial Services — Capital Markets · BSE

₹10.50−₹0.49 (−4.46%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

G.K. Consultants Limited operates as a non-banking financial company in India. It also engaged in the business of consultancy, share trading, investment, hiring of assets, software business, and other activities of a non-banking finance company.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation.

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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +102% while net margin moved -130% 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+102%

Margin effect-130%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.57 — 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

69/ 100

Good

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

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

116.7x

2Y Median

116.7x

28 monthly readings · mean 158.4x · range 48.8x–324.0x

Sector Median

58.4x

median of 3 sector peers

🟡Currently trading close to its 2y median of 116.7x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 100% above the peer median of 58.4x.

vs. its own history

Fair

116.7x median over 28 months · -0%

vs. sector peers

Expensive

58.4x median of 3 peers · +100%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

30.2x

PEG

58.33

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 15.6% to 29.2% over 3 years.
Return on capital is rising
ROCE has improved from -2.8% to 0.8%.

🔴 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 113% 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 15.6% to 29.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 100% 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 20% a year✓ 26.5% CAGR
Latest reported year was -39.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 27%✓ 29.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 0.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 116.7x✓ 116.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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

2 good · 4 neutral · 5 weak

Market Cap

₹12 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

116.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.72x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.09

Profitable

Profitable on a per-share basis

ROE

0.6%

Weak

Weak capital efficiency

ROCE

0.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-39.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

2.0%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

0.5%

Weak

Assets generate little profit

Operating Margin

60.5%

Good

Healthy core-business profitability

Net Margin

9.0%

Average

Average bottom-line conversion

Current Ratio

35.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

11.2 / 11.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+26.5%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+56.0%
EBITDA Margin	15.6%	21.5%	22.6%	29.2%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-0.3	₹0.27	₹0.05	₹0.09	—
ROE	-2.3%	2.1%	0.2%	0.6%	—
ROCE	-2.8%	2.7%	0.2%	0.8%	—
Free Cash Flow	₹1 Cr	₹1 Cr	-₹8 Cr	-₹3 Cr	—

🟢 Revenue has grown at 26.5% a year over 3 years.

🟢 EBITDA has grown at 56.0% a year over 3 years.

🟢 EBITDA Margin has risen from 15.6% to 29.2% over 3 years (+13.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-0.3 to ₹0.09.

🟢 ROE has risen from -2.3% to 0.6% over 3 years (+2.9 pts).

🟢 ROCE has risen from -2.8% to 0.8% over 3 years (+3.6 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.4%

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

6 general

Compare G.K.CONSULTANTS with

Equitymaster, 14 Oct

G K Consultants concludes 38th AGM, adopts financial statements

scanx.trade, 22 Aug

Compare with G.K.CONSULTANTS

Equitymaster, 26 Sept

G K Consultants appoints Madhav Kumar Mishra as company secretary

scanx.trade, 14 Sept

Noble Polymers (BSE:539200) - Stock Analysis

Simply Wall Street, 18 Sept

Karnavati Finance Ltd. Share Price: Significant 12.12% Gain

Univest, 28 Jul

Watch Items

Revenue growth is negative (-39.8%) on the latest reported period — check if this is one-off or a trend.
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

StrongBusiness Quality · Financial Health · Growth

MiddlingValuation

WeakProfitability · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

1 of 4 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑