Golden Legand Leasing and Finance Limited

Technology — Software - Infrastructure · BSE

₹7.03−₹0.15 (−2.09%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Golden Legand 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?

Golden Legand Leasing and Finance Limited engages in the business of payment gateway services in India. The company specializes in digital lending, AI-credit builder, and FinTech software development, as well as offers education loans.

IndustrySoftware - Infrastructure

SectorTechnology

Employees106

Annual revenue₹184 Cr

How does it make money?

Turns over ₹184 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 106 employees supports ₹1.73 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.73 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO 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?Some evidence

ROCE of 34.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

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 +60192% while net margin moved -114% 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+60192%

Margin effect-114%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.24 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

54/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

-0.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -39.1% to 18.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -0.8% to 23.8%.
Return on capital is rising
ROCE has improved from -0.7% to 34.8%.
High return on capital employed
ROCE of 34.8% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 3.31x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 34.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from -39.1% to 18.4%. 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?

Leverage amplifies any setback
Debt/Equity of 3.31x. Interest is payable whether or not the business has a good year.
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 559% a year✓ 744.8% CAGR
Latest reported year was -74.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹20 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 32%✓ 34.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

5 good · 2 neutral · 4 weak

Market Cap

₹10 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.24x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.1

Loss-making

Negative earnings per share — the business is losing money

ROE

23.8%

Strong

Strong capital efficiency

ROCE

34.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.31x

High

High leverage

Revenue Growth (YoY)

-74.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

568.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹20 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.8%

Average

Average margins

Net Margin

3.8%

Average

Average bottom-line conversion

Current Ratio

1.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.5 / 7.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹9 Cr	₹184 Cr	+744.8%
EBITDA	-₹0 Cr	-₹1 Cr	₹0 Cr	₹34 Cr	—
EBITDA Margin	-39.1%	-2020.3%	0.1%	18.4%	—
PAT (Net Profit)	-₹0 Cr	-₹1 Cr	-₹2 Cr	₹10 Cr	—
EPS	₹-0.08	₹-0.99	₹-1.48	₹6.93	—
ROE	-0.8%	-10.9%	-19.2%	23.8%	—
ROCE	-0.7%	-9.2%	-13.1%	34.8%	—
Total Debt	₹1 Cr	₹5 Cr	₹7 Cr	₹1 Cr	+3.9%
Free Cash Flow	-₹0 Cr	-₹3 Cr	-₹1 Cr	₹20 Cr	—

🟢 Revenue has grown at 744.8% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹34 Cr.

🟢 EBITDA Margin has risen from -39.1% to 18.4% over 3 years (+57.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹10 Cr.

🟢 EPS has turned positive, from ₹-0.08 to ₹6.93.

🟢 ROE has risen from -0.8% to 23.8% over 3 years (+24.6 pts).

🟢 ROCE has risen from -0.7% to 34.8% over 3 years (+35.5 pts).

🔴 Total Debt has grown at 3.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹20 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹125 Cr

Total Liabilities

₹82 Cr

Cash & Equivalents

₹26 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

46.3%

Corporate Actions

Ex-Dividend Date

22 Sept 1997

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 mixed4 general

Golden Legand Leasing & Finance Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Golden Legand Leasing & Finance passes all 8 AGM resolutions with requisite majority

scanx.trade, 28 Sept

Golden Legand Leasing Share Price Falls 4% on Weak Q1

Univest, 21 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Golden Legand Leasing & Finance Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Penny stock under ₹10: NBFC share jumps 7% from intraday low after this AI update

Livemint, 09 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

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

Value Research, 31 Aug

Watch Items

Revenue growth is negative (-74.4%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

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

All 5 tripwires holding · see Key things to watch ↑